Return to the KASS Homepage ------------------------------------------------------------------------ This page has been visited [***] times. LIVESTOCK KANSAS AGRICULTURAL STATISTICS Kansas Department of Agriculture PO Box 3534 Topeka, KS 66601-3534 Phone: 785-233-2230 Released: August 16, 2002 Volume 02, No. 8 ------------------------------------------------------------------------ Text Box INCLUDED IN THIS ISSUE: CATTLE ON FEED FARM LABOR MARKET IMPLICATIONS ------------------------------------------------------------------------ KANSAS CATTLE ON FEED The number of cattle on feed on August 1, 2002, in Kansas feedlots with 1,000 head or more capacity totaled 2.14 million head (see table 1), down 12 percent from a year ago and 1 percent below the number on hand July 1, 2002. Placements during July totaled 510,000 head, down 11 percent from a year ago but 34 percent above June placements of 380,000 head. Marketings during July totaled 520,000 head, up 7 percent from July 2001 and 8 percent over June 2002. Other disappearance was 10,000 head, down 5,000 head from a year ago but unchanged from the previous month. The percent of July placements by weight was: under 600 pounds, 14 percent; 600-699 pounds, 22 percent; 700-799 pounds, 39 percent; and 800 pounds or heavier, 25 percent. U.S. CATTLE ON FEED Cattle and calves on feed for slaughter market in the United States in feedlots with capacity of 1,000 or more head totaled 10.09 million head on August 1, 2002. The inventory was 7 percent below August 1, 2001 and 1 percent below August 1, 2000. Placements in feedlots during July totaled 1.84 million, 7 percent below 2001 and 4 percent below 2000. Net placements were 1.80 million. During July, placements of cattle and calves weighing less than 600 pounds were 369,000, 600-699 pounds were 365,000, 700-799 pounds were 591,000, and 800 pounds and greater were 515,000. Marketings of fed cattle during July totaled 2.19 million, 7 percent above 2001 and 5 percent above 2000. Other disappearance totaled 45,000 head during July, 24 percent below 2001 but 2 percent above 2000. Cattle on feed August 1, 2002 in the historic 7 States for feedlots with capacity of 1,000 or more head totaled 8.75 million, down 7 percent from the previous year and 1 percent below August 1, 2000. Placements in feedlots during July totaled 1.62 million, 6 percent below 2001 and 3 percent below 2000. Marketings during July totaled 1.89 million, 7 percent above 2001 and 6 percent above 2000. Other disappearance during July was 36,000 head, 29 percent below 2001 and 3 percent below 2000. Table 1 --CATTLE ON FEED, PLACEMENTS, MARKETINGS, AND OTHER DISAPPEARANCE, 1,000+ Head Capacity Feedlots, Selected States and United States, August 1, 2001-2002 Number on Feed 1/ July July Other August 1 Placements Marketings Disappearance State July 1 During July 2/ 2002 2001 2002 % of 2001 2002 2001 2002 2001 2002 2001 -----1,000 Head----- (%) -------------------------------1,000 Head------------------------------- AZ 291 297 285 96 44 26 36 31 2 1 CA 485 475 485 102 56 59 48 56 3 3 CO 1,030 1,060 990 93 195 190 240 225 5 5 ID 300 310 285 92 60 52 69 66 1 1 IA 350 325 320 98 35 44 54 72 1 2 KS 2,160 2,420 2,140 88 570 510 485 520 15 10 NE 1,890 1,810 1,790 99 320 400 400 495 10 5 NM 101 101 109 108 13 18 9 9 1 1 OK 325 390 310 79 68 60 66 74 2 1 SD 175 154 160 104 14 18 34 30 1 3 TX 2,850 3,000 2,740 91 510 390 495 490 15 10 WA 180 229 165 72 61 39 58 53 1 1 Other 350 320 310 97 40 34 53 72 2 2 7-St 9,056 9,387 8,750 93 1,730 1,619 1,758 1,889 51 36 3/ U.S. 10,487 10,891 10,089 93 1,986 1,840 2,047 2,193 59 45 1/ Being fattened for slaughter market on grain or other concentrates to grade select or better. 2/ Includes death losses, movement from feedlots to pastures and shipments to other feedlots. 3/ Arizona, California, Colorado, Iowa, Kansas, Nebraska, and Texas. Table 2- -CATTLE ON FEED: NUMBER PLACED ON FEED BY WEIGHT GROUP 1,000+ Head Capacity Feedlots, Selected States and United States, July 2001-2002 Placed in July State Under 600 600-699 700-799 800 Plus Total 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 --------------------------------------------1,000 Head -------------------------------------------- CO 30 28 46 37 67 65 52 60 195 190 KS 85 70 160 110 210 200 115 130 570 510 NE 39 36 58 83 109 121 114 160 320 400 TX 190 120 120 85 140 125 60 60 510 390 Other States 125 115 60 50 80 80 126 105 391 350 US 469 369 444 365 606 591 467 515 1,986 1,840 U.S. WORKERS DOWN 12 PERCENT; WAGES UP 4 PERCENT There were 1.21 million hired workers on the Nation's farms and ranches during the week of July 7-13, 2002, down 12 percent from a year ago. There were 966,000 workers hired directly by farm operators. Agricultural service employees on farms and ranches made up the remaining 240,000 workers. Farm operators paid their hired workers an average wage of $8.60 per hour during the July 2002 survey week, up 31 cents from a year earlier. Field workers received an average of $7.91 per hour, up 21 cents from last July. Livestock workers earned $8.37 per hour, compared with $7.89 a year earlier. The Field and Livestock workers combined wage was up 27 cents from last year. Table 3 --FARM LABOR, NORTHERN PLAINS, for survey week July 7-13, 2002 1/ Hired Wages by Type of Work Expected to Hours Wage Year be Employed Worked Rates & Number 150 149 by Field & for Month of Days Days Hired Field Livestock Livestock all Workers or or Workers Hired Workers More Less - - - - - 1,000 - - - - - - - Dollars per Hour - - - - - - - Hours - 2002 January 28 25 3 38 .5 8 .34 8 .41 8 .39 9 .00 6-12 April 37 29 8 46 .0 8 .48 8 .06 8 .31 9 .22 7-13 July 39 28 11 41 .8 8 .32 8 .57 8 .41 8 .72 7-13 2001 July 38 28 10 41 .7 7 .96 7 .98 8-14 7 .97 8 .24 October 41 26 15 41 .0 8 .37 8 .46 8-14 8 .40 8 .68 1/ Northern Plains Region includes Kansas, Nebraska, North Dakota, and South Dakota. MARKET IMPLICATIONS - Provided by Jim Mintert, Extension Ag Economist at KSU - Research & Extension Service Cattle feeders continue to lose money. Losses accruing to a standardized monthly yearling feeding program averaged $80 per head from May 2001 through August 2002. And losses this summer likely ranged from about $50 to $90 per head for many cattle feeders. These dismal returns continue to discourage cattle feeders from placing cattle on feed. Today's Cattle On Feed report indicated net placements of cattle on feed (U.S.) during July fell 7% below a year ago and were 4% smaller than July's five-year average. This was the fourth month in a row that placements of cattle on feed fell below 2001's. Placements on feed were smaller across all weight groups, except among cattle weighing 800 pounds and over. Placements of cattle on feed in this heaviest weight group were actually 10% larger than last year and less than 1% below the July five-year average. Placements of cattle weighing from 700 to 799 pounds were smaller than last year, but only by 2.5%. The bulk of the placement decline was focused on cattle weighing less than 700 pounds. Rising feed grain costs will continue to discourage placement of light-weight cattle on feed. The decline in placements, and rise in marketings during July combined to push the August 1 on feed inventory 7% below a year ago. This compares to year-to-year reductions of 5% and 2%, on July 1 and June 1, respectively. Cattle slaughter could be slowing down, although weights remain heavy. Weekly slaughter during the first half of August was just 2% larger than last year, down from an increase of about 4% during July. Weights remain very heavy, as steer weights averaged 3.5% above last year the last week of July. Even as slaughter slows down, beef production will remain above last year because of the affect of heavy weights. Cash prices this fall are expected to strengthen as smaller placements of cattle on feed lead to smaller slaughter. Year over year percentage increases in weights will also decline this fall, but weights will probably remain heavier than last year. Even so, beef production should fall below the preceding year sometime this fall and remain below the prior year during the first half of 2003. The reduction in beef supplies should lead to higher prices, although large competing meat supplies will be a problem through year end. Look for a fall quarter slaughter cattle cash price average in the high $60's. Cash prices have a good chance of averaging above $70 this winter. A return to a more typical winter weather pattern this year could push this winter's slaughter cattle cash price average into the mid-$70's. Dave Ranek & Dan Kolterman, Agricultural Statisticians Eldon J. Thiessen, State Statistician Eddie Wells, Deputy State Statistician Return to the KASS Homepage