By Jamie Martin
The latest USDA cattle on feed report delivered key updates after missing data was backfilled from the government shutdown. As of November 1, cattle on feed stood 2.2 percent lower than last year, representing a decline of about 260,000 head. October placements dropped by 10 percent compared to October 2024, and marketings were down 8 percent. Between January and October 2025, placements totaled 17.6 million head, which is 6.4 percent below the same ten-month period in 2024.
Regional trends showed significant differences in feeding activity. Texas experienced an 8.7 percent drop in cattle on feed, and Colorado posted a 13.2 percent decline. Meanwhile, Nebraska, Kansas, and Iowa all saw increases, with Iowa rising the most at 4.5 percent. Only Iowa recorded higher October placements among the major feeding states, suggesting ongoing changes in where cattle are being finished.
A major highlight of the report was the heifer percentage on feed. On October 1, heifers accounted for 38.14 percent of the total, slightly higher than the previous quarter but still below last year’s level. The country had 245,000 fewer heifers on feed compared to 2024, the fifth consecutive quarter of decline. The reduction is likely tied to decreased spayed heifer imports from Mexico, which dropped sharply from over 380,000 head last year to under 80,000 this year.
Nebraska overtook Texas as the top state for cattle on feed on November 1, something that has happened only ten times in more than 30 years. However, the industry also faced difficult news as Tyson Foods announced it will close its Lexington, Nebraska processing plant in January 2026. The plant processes up to 5,000 head per day and employs roughly 3,000 workers. Tyson also plans to reduce operations at its Amarillo, Texas facility, though details remain uncertain.
These changes sent futures markets sharply lower, with contracts falling to limit-down levels. As the Thanksgiving week continues with fewer auctions, price reactions may take time to fully appear. The cattle industry will continue monitoring these developments as the outlook evolves.
Photo Credit: gettyimages-jessicahyde
Categories: National