Possibly the biggest surprise was the number of feeder cattle placed on feed during April. The trade was expecting about 4.3 percent more placements, but the 9.9 percent higher placements indicated in the report were higher than most expected. The increased placements came from several sources. Cattle placed in April weighing less than 700 pounds were up 13.4 percent from last year, which seems high given that feed costs have surged over 100 percent from last year at this time. Extremely dry conditions in many parts of the Southern Plains forced calves to move from grazing into feedlots earlier than normal. The dry conditions extend down into Mexico as well. That, coupled with historically high prices, has caused more feeder cattle imports from Mexico this year. For the week ended May 14, a total of 549,441 Mexican feeder cattle had entered the U.S. in 2011, about 26 percent more than last year. Many of these cattle likely went directly into feedlots this year rather than to grazing, which would occur in a typical year. April placements in Oklahoma were up 33 percent, followed by Texas increasing 27.5 percent, and Kansas adding over 20.5 percent; which confirms that the dry weather in the Southern Plains has forced calves into feedlots. More dairy calves have been placed on feed this year as well, with calf slaughter down almost 11 percent for the year. April placements in important dairy states included Arizona up 56 percent, Idaho 26 percent higher, and California increasing 6 percent.

Higher placements occurred in January, March and April with February being the only month with slightly lower placements than last year. Seasonally, placements usually increase in May and continued severe drought conditions in the Southern Plains and lower calf slaughter could support an increase. Placements usually decline seasonally in June. Likely, less feeder cattle will be available in the future due to the smaller calf crop, but weather conditions will continue to be a wild card. Currently, weather conditions in the Northern Plains are favorable for grazing. Last week, I drove East to West across the entire state of North Dakota and surplus moisture conditions were evident on the entire trip. This bodes well for pasture and range conditions, but crop planting progress remains well behind normal. In far western N.D., seeding would typically be complete by now but it is just getting started. And in the last few days the western one third of N.D. and the eastern one third of Montana received another 1 to 3 inches on rain.

Tim Petry is a livestock economist for North Dakota State University Extension Service.

This originally appeared in the newsletter “In The Cattle Markets.”