Meat packers will be required to explicitly list the origin of beef, pork and chicken sold in U.S. grocery stores, the government said on Thursday, a regulation intended to resolve years of disputes with Canada and Mexico.

The Obama administration unveiled the new rule on the final day to comply with a World Trade Organization decision, issued in June 2012, that upheld complaints by the trading partners that the original U.S. rules damaged their livestock sales.

Under the new country-of-origin labeling (COOL) regulation, labels will carry legends such as "Born, Raised and Slaughtered in the United States" for U.S. animals. Meat from other countries could carry labels such as, for example, "Born in Mexico, Raised and Slaughtered in the United States."

No commingling of meat from various nations will be allowed.

In the original rule, which took effect in March 2009, packages could carry labels saying the meat was from the United States and other nations.

COOL was backed by U.S. consumer groups and some of the largest U.S. farm groups. It was opposed by trade groups representing U.S. cattle and hog producers and foodmakers.

Meat exporters in Canada and Mexico have said the rules would cut into cattle and hog shipments to the United States. The Canadian government has threatened a possible retaliatory strike against U.S. imports.

The House of Representatives approved a bill as expected on Wednesday declaring that a presidential permit was not needed to approve the Canada-to-Nebraska leg of the Keystone XL oil pipeline, a move that would take a decision on the project away from the Obama administration. The Republican-controlled House voted 241-175, with less support from Democrats than during the most recent attempt to speed up pipeline approval. The bill faces an uphill battle because it would have to pass the Senate with enough votes to overcome a promised veto from President Barack Obama.  "We've waited 1,700 days for this project," Fred Upton, Republican of Michigan, said as the floor debate wound down, adding that moving oil by pipeline was "safer and more economical" than other methods.

A series of amendments, some dealing with pipeline safety and the cost of cleaning up potential pipeline spills, were defeated along party lines.

The White House's Office of Management and Budget said in a memo on Tuesday that the House bill "conflicts with long-standing Executive branch procedures" and that Obama's advisers would recommend a veto. TransCanada Corp's pipeline would link Alberta's oil sands production with refineries and ports along the U.S. Gulf Coast.

The pipeline would transport about 830,000 barrels per day and cost some $5.3 billion to construct. The Alberta-to-Nebraska leg needs presidential approval because it crosses a national border. It has been pending with the administration since 2008 and is now undergoing a second round of review by the State Department.

The House legislation states that the environmental impact studies already completed would be sufficient to approve the project without the need for additional review, and also calls for legal challenges to the pipeline to be filed within 60 days.  "What this boils down to is breaking through bureaucratic hurdles and making this project a priority," said Jeff Denham, a California Republican. 

The pipeline's southern leg, for Texas to Oklahoma, is more than halfway built.  The project has been hailed by the energy industry as part of the U.S. push toward energy independence. It is also supported by many unions because it would provide thousands of construction jobs. Environmentalists have vociferously opposed the pipeline, saying it would raise greenhouse gas levels and lock the United States into long-term dependence on fossil fuels. 

Hog futures climbed for the third straight session on speculation that record-high U.S. beef prices will encourage consumers to switch to cheaper pork. Cattle declined. 

Wholesale-beef prices are up 7.3 percent in May, heading for the biggest monthly rally in more than a year, to $2.1066 a pound yesterday, the highest since at least 2004, U.S. Department of Agriculture data show. That’s more than twice the cost of wholesale pork, which yesterday reached 93.69 cents a pound, the highest since August. 

Pork “prices, when you compare it to poultry and beef, are relatively cheap,” Mark Schultz, a chief analyst with Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “That has opportunity to see a little bit more demand in here.” 

Hog futures for July settlement rose 0.5 percent to 92.225 cents a pound at 10:47 a.m. on the Chicago Mercantile Exchange. The price through yesterday gained 7 percent this year. 

Cattle futures for August delivery slid 0.5 percent to $1.198 a pound in Chicago, the first decline this week. Prices through yesterday fell 9 percent this year. 

Feeder-cattle futures for August settlement dropped 0.6 percent to $1.4565 a pound. 

The ongoing advance in wholesale values seems to support cattle futures Tuesday; choice cutout set a fresh record at 210.04 cents/pound Monday afternoon and rose slightly again at midday. That strength, as well as very profitable margins for beef packers suggest country cattle prices will also rise later this week. That made discounted CME futures seem rather cheap. June cattle surged 0.77 cents to 120.90 cents/pound at the Tuesday settlement, while December advanced 1.30 cents to 125.20. Meanwhile, August feeder cattle futures leapt 2.00 cents to 146.47 cents/pound, and November jumped 1.95 cent to 152.00.

The weekly Crop Progress report released Monday afternoon obviously depressed corn futures Tuesday, since the indicated surge in U.S. corn plantings easily exceeded expectations. Concurrent developments in the financial markets, particularly equity index slippage and U.S. dollar strength may have weighed upon prices early, but late mitigation of those moves seemed to take pressure off of commodities. Talk that recent old-crop price strength had sparked active farmer selling apparently weighed upon nearby futures. July corn fell 9.5 cents to $6.40/bushel Tuesday afternoon, while December ended the day unchanged at $5.2025.

Old crop soybean futures were hit by talk of accelerated farmer sales in response to rising spot quotes Tuesday morning, but the nearby July contract reversed to the upside later in the day. Ideas that frantic corn plantings will enable farmers to plant beans on time seemingly depressed the deferred contracts. July soybean futures gained 13.75 cents to $14.7825/bushel at the Tuesday close, while July soyoil bounced 0.28 cents to 49.48 cents/pound, and July soybean meal inched $3.4 higher to $438.7/ton.

Tight old crop supplies seemed to support the expiring Minneapolis wheat contract Tuesday, whereas prospects for increased production apparently dragged the other contracts lower. The fact that many areas where plants are already growing are being blessed with plentiful moisture may also be weighing upon the markets. July CBOT wheat futures dropped 4.75 cents to $6.805/bushel in Tuesday trading and July KCBT wheat tumbled 6.5 to $7.385, while July MGE futures rose 2.75 cents to $8.135.

Anticipation of seasonal strength through mid-June seemed to support CME lean hog futures Tuesday, especially with the CME index remaining above the latest futures quotes. On the other hand, both the cash and wholesale markets have shown signs of weakness to start this week; that might bode rather ill for the hog/pork complex over the short run. June hog futures rose 0.32 cents to 92.40 cents/pound at their Tuesday close, while December futures added 0.52 cents to 78.60.

Water levels in U.S. aquifers, the vast underground storage areas tapped for agriculture, energy and human consumption, between 2000 and 2008 dropped at a rate that was almost three times as great as any time during the 20th century, U.S. officials said on Monday. The accelerated decline in the subterranean reservoirs is due to a combination of factors, most of them linked to rising population in the United States, according to Leonard Konikow, a research hydrologist at the U.S. Geological Survey. 

The big rise in water use started in 1950, at the time of an economic boom and the spread of U.S. suburbs. However, the steep increase in water use and the drop in groundwater levels that followed World War 2 were eclipsed by the changes during the first years of the 21st century, the study showed. As consumers, farms and industry used more water starting in 2000, aquifers were also affected by climate changes, with less rain and snow filtering underground to replenish what was being pumped out, Konikow said in a telephone interview from Reston, Virginia. 

Depletion of groundwater can cause land to subside, cut yields from existing wells, and diminish the flow of water from springs and streams. 

Agricultural irrigation is the biggest user of water from aquifers in the United States, though the energy industry, including oil and coal extraction, is also a big user. 

The USGS study looked at 40 different aquifers from 1900 through 2008 and found that the historical average of groundwater depletion - the amount the underground reservoirs lost each year - was 7.5 million acre-feet (9.2 cubic kilometers). 

From 2000 to 2008, the average was 20.2 million acre-feet (25 cubic kilometers) a year. (An acre-foot is the volume of water needed to cover an acre to the depth of one foot.) 

One of the best-known aquifers, the High Plains Aquifer, also known as the Oglala, had the highest levels of groundwater depletion starting in the 1960s. It lies beneath parts of South Dakota, Nebraska, Wyoming, Colorado, Kansas, Oklahoma, Texas and New Mexico, where water demand from agriculture is high and where recent drought has hit hard. 

Because it costs more to pump water from lower levels in an aquifer, some farmers may give up, or irrigate fewer fields, Konikow said. Another problem with low water levels underground is that water quality can deteriorate, ultimately becoming too salty to use for irrigation. "That's a real limit on water," Konikow said. "You could always say that if we have enough money, you build a desalization plant and solve the problem, but that really is expensive."

RECEIPTS:        Auctions     Direct    Video/Internet    Total
This Week        207,700     48,500         2,300         258,500 
Last Week        177,100     22,100        48,500        247,700 
Last Year          164,700    46,200         3,000         213,900

Compared to last week, yearling feeder cattle sold mostly steady with some major markets wavering in either direction but rarely more than 2.00.  Steer and heifer calves traded steady to 3.00 lower with the Southeast and surrounding areas posting the only good test as production areas farther north and/or west simply don’t do enough fall calving to test new-croppers this time of year, and old-crop stockers are long gone.  More favorable weather conditions for hay and row-crop farming had many producers busy in the field which limited calf demand.  Upper Midwestern Corn Belt farmers gained tremendous ground on this year’s late planting as theseasons turned straight from winter to summer with frost and snowflakes replaced by record heat.  Places like Omaha, NE and Sioux City, IA posted unseasonal triple digit temperatures along with Sioux Falls, SD as corn planters in these areas ran day and night. 

Despite the continued lack of support from the CME Feeder Cattle contracts, cash yearling feeder prices showed some support late in the week as order buyers were still filling orders in late-week auctions as receipts are expected to turn sharply lighter. Mitchell, SD reported an active market on Thursday with a good test of top quality 8 weight steers averaging 840 lbs at 133.68 and over 550 head of 900-1000 pounders at 950 lbs and 123.67.  Friday’s cattle-on-feed report could be seen as neutral to slightly bearish with May 1st inventories very near expectations at 96.6 percent of a year ago and fed marketings in April at 102.2 percent.  However, April placements were larger (115.1 pct) than already lofty expectations (112.1 pct) in comparison to very light placements the same month a year ago. 

This is not surprising as April nationwide auction receipts were also 15 percent heavier than last year.  There has been much discussion about these data being gathered only from feeding operations of 1000 head or more.  Some folks believe the smaller facilities have gone by the wayside while others think they have increased in the Northern Plains with more availability to distillers grains.  More likely, confinement operations of less than 1000 head have grown or returned to production but mostly for backgrounding calves or lighter yearlings into big feeders weighing over 850 lbs.  These cattle growers are more confident in their ability to put weight on cattle than their ability to deal with packers on such a small scale.  Feedlots continue to lose market position by cashing-in on the positive basis that cash is running to the June Board which lingers under 120.00.  The Southern Plains reported light sales .50 to mostly 1.00 lower from 125.00-125.50 while Northern trade was not established Friday afternoon.  Meanwhile, Choice boxed beef cut-out values posted all-time record highs again this week near 209.00 while poultry values are also near record highs.  This week’s reported auction volume included 58 percent over 600 lbs and 45 percent heifers.

• Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on May 1, 2013. The inventory was 3 percent below May 1, 2012. 

• Placements in feedlots during April totaled 1.75 million, 15 percent above 2012. Net placements were 1.68 million head. During April, placements of cattle and calves weighing less than 600 pounds were 375,000, 600-699 pounds were 270,000, 700-799 pounds were 455,000, and 800 pounds and greater were 650,000.

 
• Marketings of fed cattle during April totaled 1.86 million, 2 percent above 2012. 

• Other disappearance totaled 69,000 during April, 12 percent below 2012.

News of surprising cash market weakness undercut cattle futures despite record-high beef prices this week. Traders obviously expect much more spot market slippage over the next few weeks, which largely explains the CME weakness seen Friday. Live cattle futures did not react significantly to the USDA reports. June cattle closed 0.10 cents lower at 120.45 cents/pound Friday afternoon, while December bounced 0.37 cents to 125.67. Feeder cattle futures surged in response to the prospect of lower feed costs during the coming months. August jumped 0.65 cents to 146.62 cents/pound, while November moved 0.92 cents higher to 151.92.

Corn futures declined significantly prior to the midday release of the USDA WASDE and Crop Production reports, which probably reflected early U.S. dollar gains. The reports seemed somewhat bearish for the corn market, since they forecast the carryout for both 2012/13 and 2013/14 slightly above average industry predictions. July corn fell 12.5 cents to $6.3425/bushel at its Friday settlement, while December dropped 12.0 cents to $5.295.

Prices across the soy complex were mixed Friday morning. The midsession WASDE and Crop Production reports changed that somewhat, with bean and meal futures moving modestly lower in concert with the grain markets. In contract, oil futures staged a modest rally. As with the corn forecasts, 2012/13 and 2013/14 soybean carryout stocks were projected at levels above generally anticipated levels. July soybean futures had fallen 9.75 cents to $13.99/bushel as trading ended for the week Friday afternoon, whereas July soyoil rose 0.01 cents to 49.23 cents/pound, and July soybean meal slid $6.4 to $406.8/ton.

Wheat futures came under considerable downward pressure Friday morning, as traders reacted badly to the U.S. dollar advance. The USDA WASDE and Crop Production data published later in the morning were also seen as bearish, since a predicted record for global production implied a big surge in global supplies down the road. July CBOT wheat futures dove 19.25 cents to $7.0425/bushel at its Friday close, while July KCBT wheat plunged 20.75 cents to $7.5875, and July MGE futures tumbled 16.75 cents to $8.0875.

Chicago hog prices remained under pressure Friday morning despite recent cash and wholesale strength. The futures weakness almost surely reflects the growing belief that the early-spring hog/pork rally has run its course. As with cattle futures, the swine market also responded little to the USDA reports. June hog futures edged 0.07 cents lower to 90.50 cents/pound to end the week, while December futures lost 0.40 cents to 77.25.

• Total U.S. red meat and poultry production in 2014 is projected to be above 2013 as higher pork and poultry production more than offsets declines in beef production.
• Tighter cattle supplies and potential heifer retention during late 2013 and into 2014 are expected to limit cattle available for placement, thereby reducing fed cattle slaughter in 2014. Lower cow numbers and herd rebuilding will also limit non-fed beef production.
• Pork production is forecast to increase more rapidly than in 2013 as lower forecast feed costs provide incentives for producers to expand farrowings and increase carcass weights from 2013 levels.
• Broiler and turkey production are forecast higher as lower forecast feed prices encourage expansion despite lower poultry prices. Egg production for 2014 is forecast to expand as producers respond to lower feed costs.
• The total red meat and poultry production forecast for 2013 is lowered from last month as lower pork, broiler, and turkey production more than offsets greater beef production.
• Higher cattle placements are expected to support higher fed beef production and cow slaughter has remained relatively high. However, recent winter storms have affected cattle weights which are lowered slightly from last month.
• Pork production is down marginally on lower forecast slaughter in the second of half of 2013. Broiler production is lowered on hatchery and chick placement data to date, while turkey production is cut on lower poult placements.
• Continued year-over-year declines in U.S. beef production are expected to push beef exports lower in 2014. Pork exports are expected to rebound in 2014 as supplies increase and demand improves.
• Broiler exports are forecast higher on expanded supplies and moderating prices. Beef imports are expected to be higher in 2014 as U.S. cow slaughter declines and domestic non-fed beef supplies tighten. Pork imports are forecast up fractionally from 2013.
• The 2013 red meat export forecast is lowered from last month, largely due to lower expected pork exports. The beef forecast is adjusted to reflect lower first-quarter exports.
• Poultry exports are raised as higher broiler exports more than offset lower turkey exports.
• For 2014, cattle prices are forecast to rise above 2013 as supplies continue to tighten. Hog prices are forecast to be slightly lower than 2013 on higher production.
• Broiler, turkey, and egg prices are forecast to be below 2013 as production expands. Cattle price forecasts for 2013 are unchanged from last month.
• Hog prices are down fractionally from last month on weaker second quarter prices. Broiler prices are forecast higher as prices remain strong.

According to new long-term projections the USDA released, global trends suggest opportunities for growth and profitability in U.S. agriculture over the next 10 years.  For beef specifically, the report projects high prices and improved forage supplies will provide incentives for herd expansion in the United States over the next few years.

The projections suggest strong growth in exports for U.S. meat and other agricultural products based on global economic growth, diversification of diets in developing countries and favorable exchange rates as the U.S. dollar remains weak relative to other currencies.

Other key points in the report include:

• Growth in global population is projected to average about 1.0 percent per year, down from an average annual rate of 1.2 percent in the last decade. 

• Much of the world’s population growth is occurring in developing nations, which by 2022 will account for 82 percent of the total population, up from 80 percent in 2010.

• Populations in developing countries, in contrast to those in more-developed countries, tend to be both younger and undergoing more rapid urbanization, factors that generally lead to the expansion and diversification of food consumption. 

• By 2022, the report projects refineries will pay over $120 per barrel of imported crude oil, compared with an average of $93.20 projected for 2013. Increases in crude oil prices raise production costs in the agricultural sector.

• The United States will continue to produce large volumes of corn-based ethanol, but the rate of growth in ethanol production will grow, using about 35 percent of total corn production. 

• Global meat consumption will grow by about 1.8 percent annually, with Africa and the Middle East accounting for more than 40 percent of the increase in global meat imports. Poultry will account for more of the gains than pork or beef.

• Crop prices likely will decline in the short term as global production responds to the current high prices. In the longer term, however, demand will keep prices for major crops above the levels seen before the increase that began in 2007.

• Lower feed costs, improved forage supplies and stronger meat demand will spur growth in U.S. beef herds through 2015. Once that growth reflects in higher beef production around 2016, cattle prices could turn downward.

• U.S. farm income will reach a record high nominal level in 2013 due to high commodity prices and large crop insurance indemnities. Lower commodity prices in the coming years will bring farm incomes down from that record, but they will remain historically high through the projection period.

• U.S. retail food prices will rise faster than the overall rate of inflation in 2013, but the increases than should drop below the overall inflation rate through 2022.  Improvements in the domestic economy and consumer demand will cause food expenditures for meals away from home to rise faster than expenditures for food at home and restaurant meals will account for a growing share of total food spending. 

U.S. beef exports set a new value record in 2012, topping highs set in 2011, according to end-of-year statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).  The achievement was more significant in light of challenging export conditions that included non-science-based trade barriers in several key markets and an anemic economy in certain regions.

“The export markets are a critical profit center for the industry at a time when the industry is challenged by high input costs and a historically low herd size,” said Philip Seng, USMEF president and CEO. “2012 saw record highs for per-head export values for both pork and beef at a time when those returns were sorely needed by producers.”

The value of beef exports for the year rose 2 percent to a record-high $5.51 billion on 12 percent lower volumes (1.13 million mt).

The per-head export value for beef hit $216.73, a $10.36 increase over 2011. Contributing to that was a new monthly record value of $242.65 set in December.

For the year, U.S. beef exports accounted for 12.7 percent of total beef production and 9.8 percent of muscle cut production. This compares to 14.2 percent and 11 percent, respectively, in 2011.

Beef Records Set in 2012

In addition to the new standards noted above, one-year export records were set in several key export markets:

• Russia: 80,408 mt (10 percent increase) valued at $307.5 million (20 percent increase) 
• Hong Kong: 65,033 mt (28 percent increase) valued at $339.5 million (43 percent increase) 
• Central/South America: 33,891 mt (31 percent increase) valued at $134.1 million (57 percent increase) 
• Canada: $1.177 billion (14 value increase even though volume dipped 6 percent to 180,015 mt) 

• Canada – $1.177 billion 
• Japan – $1.03 billion (surpassing the $1 billion mark for the first time since 2003) 
• Mexico – $822.4 million 
• South Korea – $582 million 
• Hong Kong – $339.5 million 

Looking ahead, the outlook for 2013 appears positive for both the U.S. beef and pork industries, according to Seng.

“There are many factors that go into projecting 12 months into the future, but as we continue to focus our efforts on markets that offer the greatest potential for growth, we are optimistic that 2013 will give us the opportunity to maintain the momentum we have seen in pork exports while rebounding in beef,” he said.The recent opening of Japan to U.S. beef under 30 months of age contributes to a projected growth in beef exports of 4 percent in volume (to 1.17 million mt) valued at more than $6 billion. That total may be tempered if issues with exports to Russia are not resolved.

Other Facts of Note

December beef exports were down 16 percent versus the prior year at 90,789 mt while value was down just 3 percent at $461.2 million. Export gains were seen for the month in Canada, South Korea, Hong Kong, Philippines and Central/South America.

Cattlemen and women gathered at the 2013 Cattle Industry Convention and National Cattlemen’s Beef Association (NCBA) Trade Show to hear CattleFax market analysts’ projections for the year ahead. Creighton University Professor Emeritus Art Douglas told the audience that there is a chance some regions of the United States will see a return to more normal precipitation patterns during the upcoming spring and summer growing season. That was welcome news to participants, many of whom have been enduring an ongoing, multi-year drought which has affected more than 70 percent of cattle country.

If precipitation returns to near-normal levels for the 2013 growing season, CattleFax predicts farmers in the U.S. will plant a record number of acres in both corn and soybeans. CattleFax Grain Market Analyst Chad Spearman told the audience that would lead to lower feed grain prices this year.

“If we see anything close to trend line yields, we’ll see relief on the supply side and the result will be price relief, particularly in the second-half of 2013,” said Spearman, who added that the additional moisture will help mitigate hay prices after harvest begins this summer.

A Closer Look: Hay Prices Set For Record-High Levels

“With a little help from Mother Nature, we will be in much better shape with regard to hay supply and prices during the second half of the year,” he said.

Although input costs may provide relief, analyst Mike Murphy provided a note of caution, saying that a possible economic slowdown could put pressure on beef prices and demand among consumers. He projected that net income in the U.S. would be flat, with incomes struggling to keep pace with inflation. However, he predicted beef exports would continue to provide support for prices.

‘We expect to see an increase in exports, due in large part to an increase in shipments to Japan since that market recently opened to beef from cattle under 30 months of age,” said Murphy. “Imports will also be up substantially as well, due to tighter supplies in the U.S. at a time when we have strong demand for 90 percent lean trim.”

Overall, CattleFax Senior Analyst Kevin Good predicted beef production in the U.S. will fall, with per-capita supply declining 2.2 percent. However, he said the decrease will be partially offset by increasing carcass weights. CattleFax projects the Wholesale Beef Demand Index will decline by 1 percent, due to a 1 percent decline in real income of consumers.

Good said he expects that there will be a shift in leverage with the loss of packing capacity in the U.S. after the closure of a southern Plains packing plant earlier this year.

Industry At A Glance: Feedlot, Packing Overcapacity

“As a result of that decline in capacity, feedlots will get a smaller percentage of the wholesale value of beef,” said Good. He added that CattleFax is projecting average prices will be higher for all classes of cattle during 2013 compared to the prior year.

Prices are expected to average $126 compared to $123 during 2012, an increase of 2.5 percent. Yearling prices are expected to average $155, an increase of 5 percent from the 2012 average of $147. According to Good, calf prices will average $175, up 5 percent from last year’s average of $167.

“The cow-calf sector will remain in the driver’s seat during 2013, particularly if they have feed,” said Good.

CattleFax CEO Randy Blach summarized the year ahead by saying it will be a difficult year for margin operators in the cattle business. He emphasized the importance of risk management due to continued volatility and rising capital requirements. Packer margins, though, should see some improvement as the result of the decline in capacity, a trend that he expects to continue.

“Don’t be surprised if we see the loss of another one or two plants before we’re done with the consolidation phase,” said Blach. Likewise, he said the industry can expect cattle feeding capacity to continue its decline due to the current market situation.

All cattle and calves in the United States as of January 1, 2013 totaled 89.3 million head, 2 percent below the 90.8 million on January 1, 2012. This is the lowest January 1 inventory of all cattle and calves since the 88.1 million on hand in 1952.

All cows and heifers that have calved, at 38.5 million, were down 2 percent from the 39.4 million on January 1, 2012. This is the lowest January 1 inventory of all cows and heifers that have calved since the 36.8 million head in 1941.

• Beef cows, at 29.3 million, were down 3 percent from January 1, 2012.
• Milk cows, at 9.2 million, unchanged from January 1, 2012.

• All heifers 500 pounds and over, 19.1 million, down 1 percent.
• Beef replacement heifers, 5.4 million, up 2 percent.
• Milk replacement heifers, 4.6 million, down 2 percent.
• Other heifers, 9.2 million, down 3 percent.
• Steers weighing 500 pounds and over, 15.8  million, unchanged.
• Bulls weighing 500 pounds and over, 2.1 million, down 2 percent.
• Calves under 500 pounds, 13.8 million, down 2 percent.
• Cattle and calves on feed for slaughter in all feedlots, 13.4 million, down 5 percent.
• The combined total of calves under 500 pounds, and other heifers and steers over 500 pounds outside of feedlots was 25.5 million, up 1 percent.

• The 2012 calf crop was estimated at 34.3 million head, down 3 percent from 2011. This is the smallest calf crop since the 33.7 million born during 1949. 
• Calves born during the first half of 2012 are estimated at 25.0 million, down 3 percent from 2011.