The USDA’s Cattle on Feed Report showed a surprising rise in feedlot inventories. It’s a remarkable shift in the recent market direction as it’s the first year-over-year inventory increase the industry has seen in 18 months. The USDA said cattle and calves on feed for slaughter markets in the U.S. for feedlots with a capacity of 1,000 or more head totaled 11.6 million head on May 1.
The total inventory sits two percent above May 1, 2025, topping the average pre-report analyst expectations. The primary driver behind the larger inventory was a significant increase in April placements, which totaled 1.7 million head, a six percent increase compared to the same period last year. Analysts had projected a lighter placement number. The surge in placements was driven largely by dry weather in the Plains states, which led to fed cattle marketings dropping by ten percent.
-NAFB