By Andi Anderson
The latest U.S. Department of Agriculture Cattle on Feed report revealed an interesting trend in the cattle industry. While fewer cattle were placed in feedlots during August, the total number of cattle on feed remained above last year's levels. The report highlights ongoing changes in cattle production and suggests continued support for strong cattle prices.
According to Josh Maples, Assistant Professor and Extension Economist, Department of Agricultural Economics, Mississippi State University, feedlots with a capacity of 1,000 head or more held 11.16 million cattle on Sept. 1. This represented a 0.7% increase compared to the same period last year. Although inventories remained higher, the figure was slightly below industry expectations before the report's release.
The most notable finding was the decline in cattle placements. During August, producers placed 1.62 million head of cattle into feedlots, down 9.2% from the 1.78 million head placed during August of the previous year. This decline was larger than many market analysts anticipated. At the same time, cattle marketings totaled 1.52 million head, down 3% from a year earlier.
Both placements and marketings reached their lowest August levels since at least 1996. Despite these reductions, the Sept. 1 inventory ranked as the fifth-highest on record for that date. This indicates that cattle are being fed for longer periods before being marketed.
The decline in placements was evident across all weight categories and several major cattle-producing states. Nebraska recorded one of the largest decreases, with placements falling 14%, representing 65,000 fewer head than the previous year. This accounted for roughly 40% of the national decline.
Kansas reported placements of 440,000 head, down 7%, while Colorado placements dropped 18% to 115,000 head. Texas placements fell 6% to 320,000 head, and Iowa recorded a 6% decline to 61,000 head. Oklahoma was the only major state to post an increase, with placements rising 8% to 53,000 head.
The report also shows that feedlots continue to hold cattle longer than in previous years. The average share of inventory marketed each month, based on a rolling twelve-month average, has declined to 14.1%. By comparison, the average turnover rate was approximately 16% between 2018 and 2023.
This slower movement of cattle through feedlots explains why on-feed inventories have remained above year-earlier levels for the past five months, even though fewer animals are entering feedyards. Longer feeding periods allow inventories to stay elevated despite declining placements.
Industry analysts view the report as supportive for cattle prices. Placements have been below year-ago levels in ten of the last twelve months, and the rolling twelve-month placement total has remained lower than the previous year for 46 consecutive months. Over the past year, total placements reached 20.1 million head, compared with 23.4 million head four years ago.
The outlook suggests this trend will continue. The 2026 calf crop is estimated at 32.5 million head, representing another 2% decline. With fewer calves available and placements continuing to decrease, cattle supplies are expected to remain tight. As a result, the industry may continue to see favorable market conditions and strong cattle prices in the months ahead.
Photo Credit: gettyimages-baranozdemir
Categories: Ohio, Livestock, Beef Cattle