Ethanol, Corn Price and Weather Shifting Cattle Feeding North

Traditionally, Texas, Kansas and Nebraska have ranked as the top three cattle feeding states, in that order, amongst feedyards with 1,000+ head capacities (see Figure 1 on next page). A unique combination of severe winter weather, high corn prices and the rapidly increasing production of ethanol byproducts may have been shifting that pattern in recent months. Cattle on feed data show that Nebraska has had the second largest number of cattle on feed in lots with 1,000+ head capacities since February 1. This resulted from a 22 percent increase in feed numbers since September 2006 in Nebraska. Interestingly, other Northern Plains feedyards saw increases as well. Iowa and South Dakota on feed inventories increased 16 percent and 48 percent, respectively, during this time period. Texas inventory declined 6 percent since September 1, 2006 and Kansas and Oklahoma increased inventory by less than 2 percent (the U.S. average was a 5.6 percent increase during this six-month time period)