Feedlot inventory has fudge factor

Supply and demand drive cattle prices. The U.S. Department of Agriculture’s National Agricultural Statistics Service compiles a wealth of information regarding cattle supply from surveys of producers. It publishes that in Cattle on Feed reports. Using a balance-sheet approach ensures that estimates are as accurate as possible. Cattle on feed at the beginning of the month, plus placements, minus fed-cattle marketings and other disappearance should equal cattle on feed at the beginning of the next month. “Other disappearance” includes death loss, cattle movement from feedlots to pasture and shipments to other feedlots for further feeding. The “Cattle Price Reactions to Cattle on Feed” reports can be large. That makes accounting important for even subtle inventory changes. Feedlot flexibility complicates counts During January 2024 other disappearance from U.S. feedlots with a capacity of 1,000 head or more totaled 81,000 head. That was 18,000 head or 29 percent more than January 2023