Cattle on Feed Falls as Placements Slow, Tight Supplies Continue to Support Market

U.S. feedlots continue to operate with historically tight cattle supplies, according to the July 2026 Cattle on Feed report (PDF Version) from the U.S. Department of Agriculture (USDA), reinforcing expectations for continued strength in the cattle market.

USDA reported 10.73 million head of cattle and calves on feed in feedlots with capacities of 1,000 head or more as of July 1, down 2 percent from a year earlier. The inventory was largely in line with pre-report trade expectations.

The report also showed June placements totaled 1.43 million head, down 2 percent from last year, reflecting fewer cattle entering feedlots as the nation’s smaller calf crop continues to work through the production system. Meanwhile, marketings reached 1.76 million head, down 4 percent from June 2025, although the decline was influenced in part by one fewer business day during the month.

The report underscores the supply challenges that have supported record cattle prices over the past year.

Producers continue to contend with the smallest U.S. cattle herd in decades, while drought conditions across portions of cattle country have slowed herd rebuilding despite historically strong prices. Fewer available feeder cattle have limited placements, and analysts expect those tighter supplies to continue supporting the fed cattle market into 2027.

The report also provided a breakdown of placement weights: