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Economist says he’s still not seeing widespread expansion of the cattle herd

An ag economist says the latest Cattle on Feed report from the USDA isn’t showing any significant signs of expansion to the cattle herd.

University of Tennessee’s Charley Martinez says the percentage of heifers on feed was relatively unchanged. “We have less animals compared to a year ago to be put into the feedyard,” he says.  “So we expect lower placements.  But, at the same time we have relatively the same demographic of heifers being in the yard. For me that’s an indication that we’re probably still not rebuilding at all or there’s no indication of rebuilding nationally right now.”

What does that mean for prices?  “That does provide some support for prices into the future as we start thinking about what we can expect as we get into the fall run and into the into the fall months and into winter,” he says.

Martinez tells Brownfield there could be expansion happening regionally – but it largely depends on the weather.  “We have some drought that’s hitting so any thought of people who were wanting to increase their herd or expand their herd, it’s kind of those plans are getting put on hold right now,” he says.  “We’re starting to feed hay in not only Tennessee, but in the southeast.”

The percentage of heifers and heifer calves were up slightly compared to year-ago levels.