US beef production declines - CoBank

Through the second quarter of 2024 , weekly cattle weights increased 3% from year-ago levels to approximately 850 pounds per HEAD. The finishing cattle herd rose 4% year-to-date to 70.5 million head, unchanged from the same period last year in June.

Thanks to lower feed costs and improved weather conditions, cattle performed well. As beef markets have weakened, cattle prices have risen, reducing incentives for MEAT processors and reducing slaughter schedules. At the end of June 2024, meat processors were losing $79 per head of cattle , while feeders were making a profit of $499 per head, pushing the margin difference to $578.

This correlates with the fact that federally controlled slaughter of livestock has decreased by 4.4% since the beginning of the year. If weights remain high and slaughter volumes remain low, experts expect these spreads to continue to widen.