SPRING HILL, Tenn. – August feedlot placements totaled 1.62 million head, 9 percent below 2025, which were the lowest for August since the series began in 1996, while the September cattle inventory climbed, according to the USDA’s Sept. 1 Cattle Inventory Report.

During August, placements of cattle and calves weighing less than 600 pounds were 320,000 head; 600-699 pounds were 240,000 head; and 700-799 pounds were 355,000 head, the USDA said.

Released Sept. 18, the report said U.S. cattle and calves on feed for the slaughter market for feedlots with capacity of 1,000 or more head totaled 11.2 million head Sept. 1, with inventory 1 percent above Sept. 1, 2025. The report added that marketings of fed cattle during August totaled 1.52 million head, 3 percent below 2025, which were also the lowest for August in 30 years. 

Andrew P. Griffith, University of Tennessee professor of agricultural and resource economics, who is also a cattle producer, told Farm World the record low placements in August were to be expected since it was clear that cattle movement slowed.

“At the beginning of August, feeder cattle prices had stalled, and started moving lower,” he said. “Tyson then made their announcement concerning closing facilities and selling facilities, which added more pressure to the market. Following that, President Trump announced his beef import initiative, which increased down pressure on cattle prices. All of this resulted in several cattle simply never being marketed during August.

“Actually, I know some producers who intended to sell cattle in August who still have them,” he added. “They will eventually have to move those cattle. This means placements will increase at some point this fall.”

He said the market certainly acted like there were big surprises, with the market gapping higher Sept. 21, but the passing of a few days resulted in the futures market settling back into place: “Folks are always looking to trade the rumor, and then there is a correction that has to be made when information is available.”

Josh Maples, Mississippi State University Extension associate professor of agricultural economics, said in his Sept. 28 analysis of the report that although August placements and marketings were the lowest for any August since the series began in 1996, the Sept. 1 cattle inventory still ranked the fifth highest as cattle are being fed longer.

“This report is further proof of feedlots holding cattle longer than has been usual in the past,” he added. “The share of inventory marketed each month, averaged over 12 months, has fallen to 14.1 percent. That rate averaged 16 percent from 2018 through 2023. Slower turnover is why on-feed numbers have run above a year ago for the past five months, even as fewer cattle enter feedlots.”

He said placements were lower across all weight classes: “Placements in Nebraska were down 14 percent, or 65,000 head fewer than a year ago, which accounted for 40 percent of the national decline. Kansas was down 7 percent to 440,000 head; Colorado was down 18 percent to 115,000 head; Texas was down 6 percent at 320,000 head; and Iowa was down 6 percent at 61,000. Oklahoma was the only state to place more cattle than a year ago, up 8 percent at 53,000 head.”

Griffith said he is sure September placements will include several of the cattle that would have normally been placed in August, but some will continue to be holdouts: “However, they cannot hold onto them forever. Thus, the cattle will make their way to a feedlot sooner rather than later.”

He said producers should not be expecting some great resurgence in cattle prices for any class of cattle: “The market remains historically strong, despite it not being at the record levels set in 2026.”

He added that heifer retention is going to be more difficult than some expected, given drought across a large portion of the country: “I am not expecting much change from where we sit today. Volatility will persist and result in large swings, but the fundamentals remain the same.”

Maples said the takeaways from this report are supportive of cattle prices: placements have run below year-ago levels in 10 of the past 12 months, and the rolling 12-month total has been under the prior year for 46 consecutive months.

“The past 12-month placements now total 20.1 million head, down from 23.4 million four years ago,” he said. “With the 2026 calf crop estimated at 32.5 million head, down another 2 percent, the trend of fewer placements over time will continue.”

Grant Dewell, Iowa State University associate professor of veterinary medicine and beef Extension veterinarian, told Farm World, “We really don’t have much room to move prices. Feeder cattle supply is still really tight, which will keep prices up, but demand has cooled, so there is not much chance for increase.”

For feedlots, he said this is going to pressure break-evens, especially as corn prices are starting to move up: “We will need good harvest conditions to maintain corn prices for feedlots, but that is looking to be a challenge this year.

“With ports with Mexico starting to open, we may see some relief for feedlots with cattle supply, but how many cattle will actually be imported, and when the next closure occurs is unknown, so it’s difficult to make plans,” he added.

Long term, he said, “The numbers indicate that we may have hit bottom: cow slaughter is down, and heifer retention is starting to tick up. However, that potential is being weighed down by drought conditions across the west, with 69 percent of the cattle herd in drought-affected pastures. Hope is for El Niño to deliver precipitation in the west.”