January 28, 2025
Mike Pearson takes a look at the "Cattle on Feed" report and how it reminds us that the cattle supply is tight in the United States.
USDA's cattle on feed report delivered bullish news on Friday to the markets.
The report says that feedlots with 1,000 head or more totaled more than 11.8 million cattle on feed. That was down 1 percent from 2024.
There are about 7.25 million steers in the feedlots or 61 percent of the cattle on feed.
The report showed the first indication of heifer retention which had a decline of 3 percent and may signify herd rebuilding.
Feeders totaled 1.64 million head which is down 3 percent lower than 2024 December placements.
This was in line with the recent trends of reduced feeder supply in the markets especially with Mexican cattle feeder supplies banned since November.
There are signs that imports from Mexico could start back up as soon as this week which would put a stop to the feeder rmarket growth.
Overall, the report came in more bullish than expected.
Tighter supplies ahead would mean higher cattle markets prices through the first quarter of 2025.
However, some are thinking that volatility is expected in cattle market.
Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.
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