The USDA monthly Cattle on Feed report for August showed the number of cattle in feedlots was 10.656 million head, unchanged from pre-report estimates. July cattle placements were 1.922 million head, lower than last year and estimates. Marketings were 1.913 million head, slightly lower than last year but below estimates. Feedlot inventories are expected to remain below year-ago levels through the remainder of 2012 due to tighter supplies and high feed prices.

1. Vol. 10, No. 161 August 20, 2012
USDA’ monthly Cattle on Feed report for August,, re- USDA Cattle on Feed Report -- August 2012
leased Friday afternoon, showed the number of cattle in feedlots Thous. Hd. 2012 as Pct. of 2011
with capacities of 1000 head and more almost precisely as was Differ-
expected, on average, by analysts surveyed before the report’s 2011 2012 Actual Estimate*
ence
release. The key numbers from the report appear in the table at right. On Feed, August 1 10,579 10,656 100.7 100.7 0.0
Some highlights are: Placed on Feed in July 2,135 1,922 90.0 91.4 -1.4
 Total cattle on feed as of August 1 numbered 10.656 million head, Fed Cattle Marketed, July 1,918 1,913 99.7 101.6 -1.9
*Dow Jones survey
0.7% higher than one year ago. That year-on-year increase is
exactly the same as the average of pre-report estimates. The
figure is 7.9% larger than was the inventory on August 1, 2010. FEEDLOT PLACEMENTS
Total U.S., Lots of >1000 Head Capacity
 The “on the nose” feedlot inventory number was reached in a Thous. Hd.
slightly roundabout manner with both placements and marketings 2700
coming in lower than what analysts, again on average, expected
2011
to see in the August report. 1.922 million cattle were place during 2500
July, 10% lower than one year ago and 1.4% lower than the num- 2012
ber expected. Recall that last year’s July placements were huge 2300 Avg. '06-'10
due to the early movement of calves from parched pastures in the
southwest. There are plenty of parched pastures to go around 2100
this year but not near as many cattle were placed. It appears that
the winner in our “feed prices vs. pasture conditions” battle is feed 1900
prices, whose high level very likely kept a good number of cattle
out of lots— for now. July placements were 8.5% larger than the 1700
2006-2010 average indicating that, while smaller than last year,
this year’s movement of cattle to feedlots was still quite large. 1500
 Marketings of 1.913 million head were only fractionally lower than 1300
last year but were 1.9% lower than analysts expectation of +1.6% J F M A M J J A S O N D
for this year’s sales. Both numbers were significantly higher rela-
tive to one year ago than was steer and heifer slaughter over the
four weeks that ended July 28. That figure was –3.1%. COF AVERAGE PLACEMENT WEIGHT
 The lack — at least for now — of early placed cattle is apparent in Lbs.
the average in-weights of July-placed cattle. Those cattle 740
weighed an average of 713.7 lbs., just one pound higher than the 730
2006-2010 average for July but 11.5 pounds heavier than last
year’s July-placed cattle. The lower August placements and 720
“normal” placement weights are slightly bullish for January and 710
February fed cattle prices.
700
 The impact of pasture conditions can be most clearly seen in the
state-by-state placement data. Placements in Oklahoma and 690
Texas were 21% and 25%, respectively, lower than one year ago. 680 2010
Those declines account for 243,000 of the 471,000 fewer cattle 2011
placed this July. Part of this reduction is due to the simple fact 670 2012
that there are fewer cattle in those states this year but part of it is Avg. '06-'10
660
due to relatively better pasture conditions in much of Texas and a
650
smaller proportion of Oklahoma. Conversely, placements in Ne-
braska were 5% higher this year while placements in Iowa, Kan- 640
sas and South Dakota were 95%, 93% and 91% as large as last J F M A M J J A S O N D
year — smaller but still above the national year-on-year figure,
meaning they drove the national number higher. record-high feed prices will both discourage any growth in feedlot
We expect cattle placements to remain lower than one year numbers. We still expect feedlot inventories to fall below year-ago
ago for the remainder of 2012. T/hat is not saying a lot since place- levels in September and for beef cutout values and cattle prices to
ments last year were so large but tighter feeder cattle supplies and move higher this fall. The Choice cutout gained almost $9 last week.
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2. Vol. 10, No. 161 August 20, 2012
PRODUCTION AND PRICE SUMMARY Week Ending 8/18/2012
Current Pct. Pct. Pct.
Item Units Week Last Week Change Last Year Change YTD Change
Total Meat & Poultry Prod. Million lbs. 1705.1 1686.3 1.12% 1687.6 1.04% 54,591 -1.49%
C FI Slaughter Thou. Head 643 642 0.16% 669 -3.93% 20,514 -4.18%
A FI Cow Slaughter Thou. Head 120.9 121.9 -0.88% 129.3 -6.53% 3,688 -3.35%
T Avg. Live Weight Lbs. 1303 1300 0.23% 1273 2.36% 1,296 1.75%
T Avg. Dressed Weight Lbs. 792 791 0.13% 776 2.06% 786 1.98%
L Beef Production Million Lbs. 507.9 506.4 0.30% 517.5 -1.86% 16,093 -2.16%
E Live Fed Steer $/cwt live wt. 119.95 119.51 0.40% 114.03 5.19%
Dressed Steer $/cwt carcass 189.01 188.50 0.27% 183.14 3.21%
& OKC Feeder Steer 600-700 Lbs. 139.36 145.52 -4.23% 141.69 -1.64%
Beef Cutout 600-750 Choice 190.23 181.46 4.83% 185.05 2.80%
B Hide/Offal $/cwt live wt. 13.24 13.26 -0.15% 13.42 -1.34%
E Rib Choice 279.53 268.41 4.14% 255.07 9.59%
E Round Choice 167.28 161.51 3.57% 169.02 -1.03%
F Chuck Choice 157.09 146.59 7.16% 152.57 2.96%
Trimmings, 50% Fresh 48.05 43.19 11.25% 105.11 -54.29%
Trimmings, 90% Fresh 210.61 207.84 1.33% 178.54 17.96%
H FI Slaughter Thou. Head 2166 2031 6.65% 2050 5.64% 68,259 1.39%
O FI Sow Slaughter Thou. Head 62.9 61.4 2.34% 55.2 13.90% 1,732 -1.20%
G Avg. Dressed Weight Lbs. 201 201 0.00% 199 1.01% 207 0.43%
S Pork Production Million Lbs. 434.8 408.7 6.39% 407.4 6.73% 14,099 1.86%
Iowa-S. Minn. Direct Avg. 87.16 90.13 -3.30% 101.74 -14.30%
& Natl. Base Carcass Price Weighted Avg. 89.42 91.31 -2.10% 99.58 -10.20%
Natl. Net Carcass Price Weighted Avg. 91.92 93.81 -2.00% 102.60 -10.40%
P Pork Cutout 185 Lbs. 91.82 93.00 -1.30% 107.79 -14.80%
O Hams Primal Cutout 73.85 77.01 -4.10% 86.65 -14.80%
R Loins Primal Cutout 99.01 98.78 0.20% 129.29 -23.40%
K Bellies Primal Cutout 149.72 152.73 -2.00% 147.74 1.30%
C Young Chicken Slaughter* Million Head 156.08 154.91 0.75% 156.03 0.03% 4,872 -4.51%
H Avg. Weight Lbs., RTC 4.20 4.28 -1.91% 4.19 0.18% 4.3 -0.14%
I Broiler Production Million Lbs., RTC 655.8 663.6 -1.17% 654.5 0.21% 20,969 -3.62%
C Eggs Set Million 193.4 195.4 -1.00% 194.2 -0.38% 6,299 -3.39%
K Chicks Placed Million Head 162.6 163.7 -0.69% 162.3 0.16% 5,252 -2.90%
E 12-City Broiler Composite 83.17 80.54 3.30% 83.07 0.10%
N Georgia Dock Broiler 2.5-3 Lbs. 94.06 93.85 0.20% 86.85 8.30%
Northeast Breast Skinlss/Bonelss 139.93 135.46 3.30% 123.52 13.30%
Northeast Legs 66.14 65.88 0.40% 68.48 -3.40%
T Young Turkey Slaughter* Million Head 4.58 4.67 -1.91% 4.73 -3.23% 140.3 -0.34%
U Avg. Weight Lbs. 23.27 23.03 1.04% 22.86 1.78% 24.4 1.91%
R Turkey Production Million Lbs. 106.6 107.6 -0.88% 108.2 -1.51% 3,429 1.73%
K Eastern Region Hen 8-16 Lbs. 108.18 107.70 0.40% 103.5 4.50%
F Corn, Omaha $ per Bushel 8.07 8.21 -1.71% 7.08 13.91%
E DDGS, Minnesota $ per ton 294.00 302.50 -2.81% 182.50 61.10%
E Wheat, Kansas City $ per Bushel 8.59 8.66 -0.81% 7.89 8.87%
D Soybeans, S. Iowa $ per Bushel 17.08 16.96 0.71% 13.73 24.40%
SB Meal, 48% Central Illinois $ per Ton 560.00 561.20 -0.21% 345.00 62.30%
* Chicken & turkey slaughter, production and prices are 1 week earlier than the date at the top of this table. Cow & sow slaughter are for 2 weeks earlier