Year-end surge in cattle markets - insights from 2023 data

By Scout Nelson

As 2023 draws to a close, the cattle market presents a landscape of growth and change. The final Cattle on Feed report of the year highlights several key trends that have shaped the industry. 

In December, feedlot inventories reached 102.7% of the previous year's levels, with 12.006 million head. Texas and Kansas, the largest cattle feeding states, saw significant increases, with Texas' inventories up by 4% and Kansas by 7%. Nebraska and Colorado saw a slight decrease. 

The top four states collectively accounted for 75.1 percent of the December 1 feedlot inventories. Iowa and California also saw year-over-year increases in their cattle numbers. 

The dynamics of the cattle market were further underscored by the November feedlot placements, which were 98.1 percent of the previous year. This indicated a slight reduction in total feedlot production, as the larger feedlot inventory was attributed to a slower turnover rate rather than an increase in overall production.  

A key concern raised by the slower feedlot marketing rate was the potential lack of currency in marketings. Recent trends in steer and heifer carcass weights suggest that this may be a result of deliberate marketing strategies rather than systemic issues in the feedlots. 

Feeder and fed cattle prices have increased significantly in 2023, with cash fed prices increasing by approximately $2/cwt. Feed cattle prices in Oklahoma auctions have risen by 22% compared to the previous year, while feeder cattle prices for certain categories of steers have risen up to 44%.  

These trends in the cattle market reflect a year of resilience and strategic adaptation within the industry. The increase in feedlot inventories, coupled with rising cattle prices, points to an evolving market landscape as the industry heads into the new year. 

Photo Credit - gettyimages-jacqueline-nix