Oklahoma State Extension Livestock Market Economist Dr. Derrell Peel says several things jumped out to him in the August USDA Cattle on Feed Report- including the continuation of a smaller number of cattle on feed for the ninth month in a row. Peel also noted in his post report conversation with Ron Hays that the placement number that was six percent smaller than last July was bigger than what the pre trade guesses were predicting. He believes a lot of that was because of the historic strength of the cattle market in recent weeks- as cattle producers sold cattle that normally would be marketed later in the fall much earlier to take advantage of prices that we have never seen before.
Peel says you could see the stronger placements than what the trade expected in the weekly auction reports- “for the last several weeks, our feeder cattle runs at the auctions have been bigger year over year- we are seeing a lot of calves coming to town right now- obviously with this market at record price levels, producers are taking advantage of it, so we are seeing a lot of unweaned calves come to town that normally would be marketed one to three months from now- but they are coming earlier.”
One other dynamic that Dr. Peel believes shows the real time impact of the New World Screwworm situation is the placement number for Texas. “In Texas, Placements were only 75% of a year ago- and that almost surely reflects in part the closure of the Mexican border, so we are not bringing in as many cattle down there and yet despite that, the overall placement number was bigger than expected.”
Peel adds that you need to remember that the early marketings of calves across the country because of these historic prices- that changes the timing of when these animals come to market- and it means we will have even fewer cattle available to place into feedlots later this year.
According to the numbers released on Friday afternoon by 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 10.9 million head on Aug. 1, 2025. The inventory was 2% below Aug. 1, 2024, USDA NASS reported on Friday.
Placements in feedlots during July totaled 1.60 million head, 6% below 2024. Net placements were 1.55 million head. During July, placements of cattle and calves weighing less than 600 pounds were 340,000 head, 600-699 pounds were 245,000 head, 700-799 pounds were 365,000 head, 800-899 pounds were 378,000 head, 900-999 pounds were 195,000 head, and 1,000 pounds and greater were 75,000 head.
Marketings of fed cattle during July totaled 1.75 million head, 6% below 2024. Other disappearance totaled 51,000 head during July, 9% below 2024.
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