Drought conditions across the U.S. continue to have an impact on the cattle markets, according to recently published data.
Farm Bureau economists say the most recent Cattle on Feed report was bullish with total cattle on feed down a percent from last year. Bert Nelson points out that states impacted by drought had lower placement numbers, and that could mean lower cattle supplies in the future.
“This is likely due to some tighter calf supplies along with higher feed and input costs amplified by the drought conditions. We’ve seen marketings for fed cattle totaling 1.86 million head for September, this is four percent above this time in 2021. Now, when we really see marketing high and placements become lower over a longer drawn-out period of time, this really signals that lower cattle supplies are in the future,” said Nelson.
USDA numbers show beef slaughter is up, which Nelson says shows that packers need to get cattle in to meet current demand. He says when supplies tighten up and demand remains consistent, we should see prices follow suit.
The federal government’s status is far from the only factor moving the markets on Friday. Two critical reports released today on producer inflation and the status of the U.S. cattle herd are also top of mind.
January 30, 2026 12:51 PM
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Record milk output looks strong today, but shrinking replacement numbers mean future supply adjustments could be faster and more volatile.
January 30, 2026 11:44 AM
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A rapidly intensifying winter storm is expected to develop into a bomb cyclone this weekend, affecting the Southeast, southern Virginia, and potentially parts of the mid‑Atlantic and New England.
January 30, 2026 10:52 AM
AFBF Economist Danny Munch shares a closer look at the dairy market and the forces impacting producers today.
January 29, 2026 02:52 PM
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Early indications suggest the U.S. cattle industry may be nearing the end of its liquidation phase. Oklahoma State University livestock economist Dr. Derrell Peel says the industry could be at or near the cyclical low.
January 29, 2026 12:44 PM
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Beef x Dairy cattle with strong genetics and documentation are earning prices comparable to native feeders.
January 29, 2026 08:00 AM
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