Source: Drovers

The USDA’s July 2025 Cattle on Feed and Inventory reports highlight historically low U.S. cattle supplies, signaling bullish market conditions. The total cattle on feed as of July 1 stood at 11.1 million head—2% below 2024 and the lowest since 1996—driven by an 8% drop in June placements, the smallest in 16 years. Steers increased slightly, while heifers declined by over 5%, suggesting minimal herd rebuilding.
Total U.S. cattle inventory dropped to 94.2 million head, the lowest on record, down 1% from 2023. The calf crop and beef replacement heifers also declined by 1% and 3%, respectively. Despite a slight rise in the July 1 beef cow estimate, analyst Dr. Derrell Peel warns against overinterpreting it as herd expansion. Marketings were down 4%, the lowest June level since 1996. Overall, the data confirm tight supplies amid slow heifer retention and limited herd rebuilding, reinforcing bullish sentiment in cattle markets.