USDA August Cattle-on-Feed Report Reflects Tight Supply and Strong Fed Cattle Prices
The U.S. Department of Agriculture (USDA) has released its August Cattle-on-Feed report, and the data points to tightening cattle supplies and continued strong beef demand. USDA Livestock Analyst Anthony Fisher offered detailed insights into the current market dynamics.
“On August 1st, the number of cattle on feed in U.S. feedlots of 1,000 head or greater was 10.92 million head, which was about 2% below August 1st of 2024,” Fisher reported.
July placements also saw a year-over-year drop. “During July, producers placed about 1.5 million head of cattle on feed, which was about 6% below a year earlier. And feedlots marketed over 1.7 million head during July, which was about 6% below a year earlier.”
The reduction in placements is largely tied to supply constraints.
“The lower placements overall, they are reflective of limited supply of cattle outside feedlots, which was down 2% according to the July cattle report. In conjunction with only slight signs of heifer retention from the July cattle-on-feed report, this has resulted in a smaller pipeline of available cattle, despite a strong pull into feedlots this year, as evidenced by record high feeder prices.”
Despite supply challenges, the fed cattle market remains robust.
“As for marketings, we’re still seeing strong demand for beef, as evidenced by high wholesale beef prices, which is ultimately supporting the Fed’s tier price. Prices of fed cattle, they currently sit around $240 to $245 per 100 weight, which is an increase from the start of July, and it highlights the low supply of animals on feed.”
Fisher also noted shifts in cattle on feed duration.
“In terms of the percentage of cattle on feed for more than 150 days, we’re seeing that percentage decline seasonally as marketing’s outpaced placements until the fall calf run. Having said that, the number of cattle on feed more than 150 days is still high historically, as the pace of marketing and slaughter has slowed a bit.”
With lower placements and steady demand, the cattle market appears poised for continued tightness heading into fall.
Audio Reporting by Dale Sandlin for Southeast AgNet.