By Jamie Martin
The USDA’s latest Cattle on Feed report highlights tightening cattle and beef supplies, contributing to surging prices.
Marketings in May 2025 were down 10.1% from last year, partly due to one fewer working day, but mainly from reduced fed cattle slaughter.
Placements into feedyards were also down 7.8%, with Texas and Oklahoma showing sharp declines of 16.8% and 21.6%, respectively. These drops are likely due to continued border closures restricting Mexican feeder cattle supply.
As a result, the total number of cattle on feed was 1.2% lower than a year ago. Over the past eight weeks, beef production has dropped by 5.5%, and fewer cuts have graded as Choice, pointing to both reduced volume and quality in supply.
Strong demand has supported prices, but supply issues are also key. The Choice cutout climbed to $390 per cwt on June 20—just shy of the May 2020 record. Most Choice primals are rising, with brisket nearing $3.40 per pound.
“Just as Texas Monthly’s Top 50 BBQ joints edition hit the mailbox, primal Choice briskets kept climbing to almost $3.40 per pound,” the report notes.
Even 50% lean beef, often used in ground beef, has surged to nearly $190 per cwt, up significantly from $1.00 per pound last year.
These changes reflect the impact of tighter fed cattle marketings and slaughter rates on the overall beef supply chain.
With high demand and restricted supply, beef prices are expected to remain strong in the near future, placing pressure on both retailers and consumers.
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Categories: National