The latest Cattle on Feed Report from the U.S. Department of Agriculture showed an unexpected increase in feedlot inventories, marking the first year-over-year rise in cattle numbers in 18 months.
According to the USDA report, cattle and calves on feed for slaughter markets in the United States for feedlots with a capacity of 1,000 head or more totaled 11.6 million head on May 1. That figure is up two percent compared to May 1, 2025, and exceeded the average expectations from market analysts ahead of the report’s release.
The larger inventory was driven primarily by a sharp increase in April placements. The USDA reported placements totaled 1.7 million head during the month, a six percent increase from April of last year. Analysts had generally expected placements to come in lower.
Industry analysts said dry weather conditions across portions of the Plains states likely played a major role in the increase, as producers moved more cattle into feedlots due to deteriorating pasture conditions.
At the same time, fed cattle marketings declined by 10 percent compared to a year ago, also contributing to the higher overall inventory numbers.
The report signals a notable shift in recent cattle market trends, as the industry had experienced steady declines in feedlot inventories over the past year and a half amid tighter cattle supplies nationwide.