USDA report shows cattle placements down 1%

By Scout Nelson

The latest Cattle on Feed report from the U.S. Department of Agriculture’s National Agricultural Statistics Service, shows that the number of cattle and calves in U.S. feedlots with a capacity of 1,000 or more head totaled 11.2 million on Sept. 1, 2024. This represents a 1% increase compared to Sept. 1, 2023.

These cattle, which are fed a diet of grain, silage, hay, or protein supplements, are being raised for the slaughter market, expected to produce a carcass graded Select or better. Cattle being prepared only for later sale as feeders or those destined for other feedlots are not included in this total.

In August, placements in feedlots were down 1% from the previous year, totaling 1.98 million head, with net placements recorded at 1.92 million. Placements refer to steers and heifers placed into feedlots and fed a specific ration to produce high-quality beef for processing.

Glynn Tonsor, professor of agricultural economics at Kansas State University, noted that the report presented no major surprises, but changes might occur later in the fall or winter. “I expect to see us shift to a situation where inventories decline, consistent with lower feeder cattle availability,” said Glynn Tonsor.

Tonsor also mentioned that he hasn’t observed significant heifer retention, which would indicate the beginning of cowherd expansion. He anticipates no major rebound in the cowherd before 2025.

Looking ahead, Tonsor advised ranchers to plan for tighter cattle supplies. “The ability to sustain higher cattle prices and likely achieve higher prices hinges on beef demand being at least stable,” said Tonsor. “Signals around consumer confidence, general macroeconomic situation and details related to the state of beef demand are of elevated importance.”

In August, marketings of fed cattle, which are cattle sent from feedlots to processing plants, were 1.82 million head, down 4% from 2023. Meanwhile, disappearance, which includes death loss, movement to pasture, or further feeding, totaled 54,000 head, a 2% decrease from last year.

Photo Credit: usda