USDA Cattle on Feed Report Shows Possible Hold on Expansion

The most recent look by the USDA of cattle on feed shows a possible hold on herd expansion.

Livestock Analyst Shayle Shagam said despite numbers being up, placements up 13 percent, inventory up five percent, a deeper dive shows some interesting data.

“We are seeing an increased number of heifers in feedlots. We go the October 1^st numbers, the number of heifers on feed were up 13 percent from a year ago. As a proportion of the inventory, about 36 percent of the inventory is heifers.”

That’s up one percent from July’s numbers and up three percent from last year and it could mean that more producers are sending their heifers to lots rather than holding them back for breeding.

As one would expect, economics seem to be the driving force according to Shagam.

“Cow-calf operators are making money, but they’re not making large profits.”

Shagam said that look means that for now, herd expansion seems to be on hold.