LUBBOCK, Texas (RFD NEWS) — A seemingly modest decline in the U.S. calf crop is setting the stage for tighter cattle supplies and rising competition through 2026 and into 2027. According to Hyrum Egbert, author of The Big Bad Packer newsletter, the two-percent drop reported in the latest USDA cattle inventory equates to roughly 512,000 fewer calves moving through the system.
That reduction is far from trivial. Egbert notes it represents about one full week of U.S. fed cattle production once typical feeding patterns are applied. While the impact will not hit all segments at once, it will compound steadily over time.
Feedyards are expected to feel the strain first. Calf-fed placements are likely to tighten from the first quarter through the third quarter of 2026, followed by pressure on yearling placements from mid-2026 into early 2027. As a result, keeping pens full becomes more difficult, and competition for available cattle intensifies.
Packing plants will feel the effects later. Thinner showlists and tighter fed supplies are projected to emerge in the second half of 2026 and extend well into 2027, keeping leverage tilted toward cattle owners.
Egbert describes the dynamic as a slow-moving supply vice — tightening quarter by quarter rather than delivering a single headline shock.
Farm-Level Takeaway: Even small declines in the calf crop translate into sustained supply pressure, supporting cattle prices over multiple years.
Tony St. James, RFD NEWS Markets Specialist
Friday’s release will be the first WASDE report in about two months, and early estimates indicate a corn surplus is still on the way.
November 12, 2025 12:16 PM
·
The National Milk Producers Federation (NMPF) says recent wins in markets like Malaysia and Cambodia help farmers focus on production rather than trade barriers.
November 11, 2025 03:50 PM
·
Lucia Ruano, USMEF’s Central America representative, discusses what is driving demand for U.S. beef and pork in the region.
November 11, 2025 01:30 PM
·
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.
November 11, 2025 01:26 PM
·
If the House concurs and the President signs, USDA services and farm-bill programs resume at full speed with authorities extended for another year.
November 11, 2025 10:46 AM
·
A smaller U.S. turkey flock and resurgent avian flu have tightened supplies, driving prices higher even as other key holiday foods show mixed trends.
November 10, 2025 03:05 PM
·
Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Monday, Nov. 10, 2025.
November 10, 2025 10:48 AM
·
The DOJ’s new antitrust probe could reshape beef-packer behavior, with potential impacts on fed-cattle prices, processor margins, and long-term competition across the supply chain.
November 10, 2025 10:35 AM
·
Verified U.S. data show real leather’s carbon footprint is lower than advertised — an edge for the American cattle industry in both marketing and byproduct value.
November 07, 2025 11:32 AM
·
