USDA Releases First Cattle on Feed Report Since September After Government Reopens
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With the federal government now reopened, the USDA has issued its latest cattle on feed report, the first update available since September. USDA Livestock Analyst Michael McConnell shared key insights from the newly released data, which reflect continued tight feeder cattle supplies and shifting herd dynamics.
Cattle on Feed Numbers Down from Last Year
According to the report:
- 11.7 million head of cattle are currently in feedlots with a capacity of 1,000 head or more — 2% lower than a year ago.
- Placements totaled 2.04 million head, down 10% from last year.
- Marketings reached 1.7 million head, about 8% lower than the same period a year earlier.
McConnell noted that, “Placements continue to be down sharply from a year ago. That’s really just representative of really tight feeder cattle supplies.”
Factors Behind Reduced Feeder Supplies
Several issues are contributing to limited feeder cattle availability:
- Sharply lower imports, primarily due to bans and restrictions on cattle coming from Mexico
- Tight domestic feeder cattle supplies, consistent with the current position in the cattle cycle
These constraints are also slowing the rate of marketings compared to last year.
Early Signs of Herd Rebuilding
McConnell highlighted a trend worth watching:
“The fact that we have a lower share of heifers in feedlots relative to a year ago… shows that perhaps we do see some signs of herd rebuilding going on as heifers are retained for breeding rather than being marketed for feedlots.”
However, he also clarified that the current level of heifer retention remains higher than what is seen in typical expansion years, when the percentage drops to the low 30s rather than the upper 30s. While not yet a clear signal of broad expansion, USDA sees early indications of potential herd rebuilding in some regions.
As feeder cattle supplies remain tight, these trends will play a significant role in shaping the cattle market in the months ahead.
Audio Reporting by Dale Sandlin for Southeast AgNet.