The U.S. beef cow inventory has dropped to its lowest level since 1962, signaling what many believe is the bottom of the current cattle cycle. The tight supply has fueled a strong pricing environment that has been especially favorable for beef producers.
“For cow-calf producers right now, things are as good as they’ve probably ever been,” said Troy Rowan, assistant professor at the University of Tennessee. South Dakota cattleman Ken Odde agreed but pointed out that inflation is quickly eroding economic gains. Dave Weaber, senior animal protein analyst with Terrain, added that the industry is not yet in herd expansion mode. He said producers remain reluctant to retain heifers because of high costs and overall economic uncertainty.
While USDA reports show the smallest U.S. herd in history with tightening feedlot numbers, analysts believe the market has not yet seen the peak in cattle prices.
