Ranchers are selling more heifers as feeder cattle, an indicator of the current drought environment. That’s according to a review of USDA reported auction, video auction and direct cattle sales by the Livestock Marketing Information Center (LMIC).
The percentage of heifers in USDA’s August feeder cattle sale reports is higher this year in all three marketing channels reported – auctions, direct sales and video auctions.
Heifers sold at auction during August were 41% of receipts versus 40% in August 2020. In direct sales during August 43% were heifers compared to 38% last year, and in video sales heifers accounted for 38% of receipts versus 36% a year ago.
Total receipts of feeder cattle sales were slightly more than 1.4 million head, which is very close to the five-year average, LMIC says.
Receipts for the month of August declined 47,600 head overall, with auction receipts down 20,100 head and direct sales down 31,600 head for the month. Video sales increased 4,100 head over August 2020.
Nationally, the number of feeder cattle sold weighing more than 600 pounds increased through auctions, 57% of receipts in August compared to 55% in August 2020. There was a small decline of cattle sold direct weighing more than 600 pounds, 86% this year versus 87% last year.
Video auctions, however, saw a large decline in the number of cattle sold weighing more than 600 pounds, 55% this August versus 65% last year.
“Lower weight classifications and increases in the heifer category both are typical signposts of the drought environment,” LMIC says. “Compared to previous drought years, August percent of heifers in the mix outpaced August percentages seen in 2010, 2011, and 2012 in video auctions, and direct sales. In auctions, the percent of heifers was higher in August 2012 and similar to the levels seen in 2010 and 2011. This could indicate that heifers being held for replacement started to move as pastures continue to be exhausted and hay prices soar.”
Feeder cattle weighing less than 600 pounds moving through the marketing channels was larger than the drought years of 2010 – 2013 for auctions and direct sales, LMIC says. In 2010 – 2013 the under 600-pound receipts were a larger percentage for video auctions than they were this August.
“The larger percentage of under 600-pound animals could be indicative of early weaning,” LMIC says. “Those drought practices were common in the last significant drought.”
Calf prices still have not seen significant price pressure as Southern Plains 500-to-600-pound calves sold for $175 through most of August. Lighter calves weighing 400-to-500 pounds were still higher in August than they were in June and averaging above $180 per cwt. in the Southern Plains.
Last year, September feeder cattle receipts totaled 1.2 million head, about 200,000 above the five-year average, LMIC reports. In 2010-2013, September receipts averaged 1.3 million head. The first year, 2010 had the largest September volume at 1.7 million head, which moved 1.2 million head through auctions.
