Senior Farm and Ranch Broadcaster Ron Hays talked to OSU Extension Livestock Market Economist Dr. Derrell Peel after the latest USDA Cattle of Feed Report was released on Friday afternoon, and Dr. Peel says that the numbers might be the start of a trend toward tighter supplies in the US Feedlots.
According to USDA- “Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.8 million head on January 1, 2025. The inventory was 1 percent below January 1, 2024. The inventory included 7.25 million steers and steer calves, up 1 percent from the previous year. This group accounted for 61 percent of the total inventory. Heifers and heifer calves accounted for 4.58 million head, down 3 percent from 2024.
“Placements in feedlots during December totaled 1.64 million head, 3 percent below 2023. Net placements were 1.58 million head. During December, placements of cattle and calves weighing less than 600 pounds were 395,000 head, 600-699 pounds were 380,000 head, 700-799 pounds were 375,000 head, 800-899 pounds were 287,000 head, 900-999 pounds were 115,000 head, and 1,000 pounds and greater were 90,000 head.
“Marketings of fed cattle during December totaled 1.74 million head, 1 percent above 2023.”
Peel says that the numbers seemed to be friendly compared to the pre report estimates- “I think that the placements are going to be taken as being very friendly particularly given the market’s attitudes here lately anyway- they have been very strong- this will be a positive factor for the markets. The on feed number came in about one percent under the trade guess.”
He adds that this report is generally consistent with the last two or three months worth of reports- and he believes “this could be the start of some changes here with the on feed number dropping one percent from a year ago” saying the last year we have held right at even with the previous year on a month to month basis. “By itself, this report does not mean we have started going down the new path of tighter numbers at the feedlot level but if it continues this may be the start of it- we will need another couple of months to show it that’s happening.”
With this Cattle on Feed being a quarterly report- we have the breakdowns of the steers and heifers in the feedlots- Peel says the heifer numbers have come down just a little- but there still is no large move that suggest serious heifer retention as we end 2024. He believes we will know more in a week when we get the 2025 Cattle Inventory report from USDA- which will include both the total numbers of beef cows in the US as of January first- and also the number of heifers being held for replacements in the coming year.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Ag Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR at the top of the story for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
