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U.S. cattle herd smaller, could continue to contract
The USDA’s long-awaited Cattle Inventory report indicates further contraction of the U.S. herd is likely.
At the start of 2025, the number of heifers weighing 500 pounds and heavier were 1% lower than at the start of 2024. That includes 1% year-to-year declines for beef, dairy, and all other replacement heifers.
The number of calves weighing less than 500 pounds and the 2024 calf crop were slightly below a year ago.
All cows and heifers that have calved were down modestly, with a 1% decrease in beef cows canceling out a slight increase in milk cows.
Steers and bulls weighing 500 pounds and heavier and the total U.S. cattle inventory were down 1%.
The numbers were close to expectations and look neutral to potentially supportive, but that will also depend on beef demand and the cost of feed, along with other factors, including how much of the report was already dialed into current prices.
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