Cattle Inventories Still Moving Lower


The USDA recently released its semi-annual estimate of July 1st cattle inventories. Total cattle inventory continued its downward trend, falling 3% since last year. All notable categories of cattle were down including cows, replacements, cattle on feed, and calves. Beef cow slaughter has slowed slightly but the number of heifers slaughtered has been the same as last year despite fewer animals. This suggests herd contraction may not be over yet. Cattle prices have risen as herd inventories have fallen. These reduced inventories should continue to offer support to the higher cattle prices in the market today.  

The July report does not...