WASHINGTON, D.C. (RFD NEWS) — There are growing signs that U.S. cattle producers may be beginning the long-awaited process of rebuilding the nation’s cow herd.
Oklahoma State University livestock economist Derrell Peel says one of the clearest indicators is an increase in heifers being retained for breeding rather than entering the feeder cattle market.
Peel points to USDA inventory data showing more bred heifers than could be explained by the number of replacement heifers identified the previous year. He says that suggests producers are making late-season decisions to keep additional heifers for breeding—a trend he refers to as “impulse heifer breeding.”
According to Peel, that type of retention occurs every year, but it tends to increase during the early stages of a herd expansion cycle as producers begin rebuilding breeding inventories.
He says the indicator has started to trend higher this year, similar to patterns seen during previous herd expansion periods.
While Peel cautions that it is still too early to declare a full-scale herd expansion, he says recent USDA data and reports from cattle producers across the country suggest the industry may be taking its first steps toward rebuilding after years of liquidation driven by drought and high production costs.
USDA Announces Phased Reopening of the U.S.-Mexico Cattle Border
Cattle markets continue to react to several key developments, including the phased reopening of the U.S.-Mexico border to cattle imports and the release of the latest USDA cattle reports.
American Farm Bureau Federation (AFBF) economist Bernt Nelson joined us on Thursday’s Market Day Report to discuss how recent market data could influence producer decisions in the months ahead.
In his interview with RFD News, Nelson said the latest USDA cattle reports arrived during a period of heightened market volatility, following record-high cattle and beef prices earlier this year. He noted the reports, combined with news that Mexican cattle imports are expected to resume under a phased reopening plan, have added to market attention as producers evaluate current conditions.
He reviewed the key findings from the latest Cattle Inventory Report, including updated cattle numbers and indicators producers watch when evaluating herd conditions and future production.
Nelson also discussed the latest Cattle on Feed report, highlighting placement and marketing data that provide insight into current feedlot supplies and cattle movement.
Looking ahead, he encouraged cattle producers to focus on planning for both the near and long term. He emphasized the importance of having a written marketing plan and financial plan while maintaining communication with lenders, market advisors, and veterinarians as producers make management decisions in an evolving cattle market.
LIVE UPDATE: Superior Livestock’s Video Royale in Nevada
Superior Livestock’s Video Royale auction is underway in Winnemucca, Nevada, with more than 143,000 head of cattle being offered during the four-day event. Trent Stewart with Superior Livestock also joined us on Thursday to discuss the auction, cattle market conditions, and opportunities for producers looking to market cattle later this year.
In his live update with RFD News Markets Specialist Tony St. James, Stewart said the Video Royale auction featured a large offering of working cattle and brought together buyers and sellers from across the industry. He said the auction provided an opportunity for producers to market cattle in front of a large audience of buyers.
He discussed current market conditions and said the auction has seen strong participation from buyers at ringside. Stewart also noted that the market has remained active despite recent pressure in the futures market.
Stewart said video auctions provide advantages for producers by reducing stress on cattle and allowing them to reach a larger buying audience. He said Superior Livestock’s auctions also bring together producers, buyers, genetics programs, and branded beef programs focused on quality cattle.
Looking ahead, Stewart said producers still have opportunities to market cattle later this year through upcoming Superior Livestock sales, including the Sheridan, Wyoming sale and the Labor Day Sale. He encouraged producers to watch or participate in Superior Livestock auctions through Superior Livestock’s website, television coverage, or by phone.
LEARN MORE: www.superiorlivestock.ag
