Tight cattle supplies could continue to support prices

The tight supplies of market-ready cattle show little sign of easing and that could keep prices elevated.

The USDA says the total number of cattle on feed in the U.S. at the start of April was 11.576 million head, 1% lower than last year. The steer and steer calf inventory was down slightly from a year ago at 7.256 million head and heifers and heifer calves had a 1% year-to-year decline to 4.32 million head.

Placements into feedlots during March were the second lowest for the month on record at 1.709 million head, dropping 7% on the year, and implying ongoing supply tightness in the coming months.

March 2026 marketings were also the second lowest for the month on record and 6% under March 2025 at 1.632 million head.

The numbers are generally close to pre-report expectations, and while they might already be factored in for cash, wholesale, and futures business, the tight supplies will likely limit the downside for prices.