USDA livestock analyst Michael McConnell said there are top factors influencing the beef market right now.

 

“Strong beef demand and good, good prices for calves and feeder cattle," he noted.  McConnell says the price and demand signals in the marketplace are keeping the beef market in a contraction mode.  Friday's USDA Cattle On Feed report showed November feed lot placements were down 4% from November a year ago.  Feed lot inventories as of December 1st were also down, but by less than 1%.

 

“It seems like producers are inclined to market their heifers rather than retain them in any large quantities.  So right now the market signals are pretty much that we're still, we're not looking at a situation where we're going to see cattle inventories, so not increase in 2025.”

 

Not as long as prices and beef demand both remain very high.

 

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