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Lower Cattle Numbers Raise Beef Prices

Jun 25, 2025
By Farms.com

USDA Data Shows Reduced Placements and Fed Cattle Marketings

The USDA’s June 2025 Cattle on Feed report confirms that tighter cattle supplies are contributing to record beef prices. Marketings for May fell by 10.1% year-over-year, partly due to fewer workdays and mostly from reduced fed cattle slaughter.

Cattle placements into feedyards were 7.8% lower than last year, with declines in Texas (16.8%) and Oklahoma (21.6%). The lower numbers may result from fewer Mexican feeder cattle entering the U.S. due to border restrictions.

As placements and marketings dropped, the total cattle on feed decreased by 1.2% compared to 2024.

Over the past two months, beef production has fallen by 5.5%. There’s also been a drop in the share of beef graded as Choice, indicating limited availability of high-quality cuts.

The Choice cutout reached $390 per cwt on June 20, just below the May 2020 record. All major Choice primal cuts are rising, except for the rib, which typically declines seasonally.

“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 article noted.

Additionally, 50% lean beef prices have surged to $190 per cwt, a significant jump from last year. This lean beef, derived from fed cattle, is vital for ground beef production.

The report reflects reduced production and strong demand, signaling continued price increases across the beef market. Tighter supplies could further challenge retailers and consumers in the coming months.


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