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.
Seasonal boxed beef softness does not change the tight-supply outlook — leverage remains closer to the farm gate heading into 2026.
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Strong export demand supports feed grain prices, but drought risk and seasonal patterns favor disciplined early-year marketing.
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Sen. Deb Fischer reintroduces the HAULS Act to update hours-of-service exemptions and definitions affecting livestock and agricultural haulers. She joins us on Market Day Report to share more about her proposed legislation.
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The U.S. Meat Export Federation plans to expand its global market presence in the New Year and says it is focusing its appeal on the growing middle class worldwide.
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New World Screwworm cases in Mexico, including one within 200 miles of the U.S. border, are adding pressure to livestock markets and trade decisions.
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Preserving equity through active risk management remains critical in a volatile, supply-driven market.
January 06, 2026 06:00 AM
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