More tightening of cattle and beef supplies per USDA’s latest Cattle on Feed Report. Livestock analyst Michael McConnell says, for the period ending May 1…

“We have relatively smaller inventories and feedlots relative to a year ago, with fewer placements and fewer marketing that’s reflective of the overall tighter cattle situation than what we’ve seen the past couple of years.”

By numbers in the May cattle on feed report

“On feed lots with over 1000 head, there was 11.38 million head of cattle in those feedlots, which is 2% lower than a year ago. Over the course of the month of April, placements were 1.63 1 million head. That’s 3% lower than year ago.”

with lower placements correlating with limited supplies of cattle outside feed lots,

“Which is also reflecting relatively high prices that we’re seeing for feeder cattle as well.”

McConnell says, while there were strong fed cattle placements as late as March of this year…

“Some of that really just comes down to some seasonal factors or weather, particularly when compared to a year ago, we had relatively late placements in March of 2024 and so sometimes, you know, be careful when you look at these numbers year over year, and keep in mind what was going on the previous year. Placements have been trending lower for most of the months in 2025 again, that’s just reflective, primarily the fact that we do have, and have had pretty tight paddling cow inventories the past couple years.”

Also directly impacted by less placements and feed lots…

“Markings were 1.83 million head, which was also 3% lower than a year ago.”

Strong fed steer prices are also driving lower market takes as of May 1.

“And support of wholesale beef prices as well. So even though we have relatively tight inventories of cattle, we’re still seeing some pretty strong demand for beef, which is supporting the prices of both fed steer and wholesale beef prices as well.”

So in summarizing this month’s cattle on feed report…

“Even with the tighter cattle supplies, we still have pretty robust beef demand. So that’s partially why we see higher prices throughout the system. Tighter cattle supplies are leading to supportive prices, with consumer demand for beef still remaining pretty steady.”