July 1 Cattle Report Shows Cattlemen Keeping Heifers

The July 1 cattle report by USDA’s National Agricultural Statistics Service suggests that, nationally, breeding herd stabilization has begun.   USDA reported that the number of heifers held for the breeding herd for replacement purposes was above a year ago.  According to the Livestock Marketing Information Center, fundamental herd growth will depend on holding back a larger proportion of the 2004 born heifers. 

 As was expected, the report showed a slight year-to-year decline in the U.S. cattle inventory.  The total number of cows was slightly below 2003’s.  

As of July 1, all cattle and calves in the U.S. totaled 103.6 million head, just a tad below last year’s 103.9 million head estimate but 1.5 percent below 2002’s.  The number of beef cows totaled 33.5 million head, while dairy cows were reported at 9 million head; each category was down about 100,000 head from a year ago. 

The number of heifers 500 pounds and over held for beef replacements totaled 4.8 million head, which was 200,000 head or 4 percent more than last year.

Dairy replacements were unchanged. 

The number of steers 500 pounds and over was unchanged, but was down about 1.4 percent from 2002’s.

Many states that were severely impacted by drought in recent years reported year-to-year declines in beef cow numbers.  States with much improved pasture and range conditions generally posted significant year-to-year increases in beef cow numbers.  The notable exception was Texas, which reported a decline in beef cow numbers of 200,000 head. 

Of the 11 individual states reported by USDA, the five states that showed a year-to-year increase in beef cow numbers were Kansas (4 percent), Missouri (8 percent), Nebraska (5 percent), Oklahoma (3 percent) and Wisconsin (2 percent).

The U.S. calf crop for 2004 was estimated at 37.7 million head, down about 200,000 head from a year ago.  As of July 1, the calculated feeder cattle supply outside feedlots was also below a year ago (down about 250,000 head).

USDA also released the monthly Cattle on Feed report, but the most important on-feed number was in the mid-year inventory report.  Nationwide, the on-feed inventory was equal to a year ago.  In contrast, the monthly report put the on-feed number up 2 percent.  This indicates that the feedlots not included in the monthly report (those with capacity under 1,000 head) have significantly fewer cattle on-feed than a year ago.

Source:  Livestock Marketing Information Center