News
Reports indicate continued contraction in the cattle herd
The USDA’s latest Cattle on Feed report and the biannual Cattle Inventory report indicate contraction continues in the cattle herd, according to University of Missouri’s Scott Brown. “The percentage of heifers on feed came in at a little more than 38% again this quarter,” he says. “We’ve gotten now several quarters in a row of 37.5% and above. It just tells me, both from a cow slaughter standpoint and percentage of heifers we seen on feed, we’re not building.”
And with ongoing drought conditions, he says this trend could continue. “In terms of pasture conditions, the US that is in an extreme or exceptional drought is at the highest percentage we’ve seen since that data actually began in 2000,” he says.
Brown says both will likely contribute to higher prices. He reminds producers getting higher prices through less supplies is not really the outcome anyone wants to see. “But, I think that’s what we have as we look ahead here,” he says.
