U.S. beef market has yet to hit top

The cattle market is ending 2024 on a high note, and more of the same may be on the way in 2025. Derrell Peel, Extension ag economist with Oklahoma State University, says cattle numbers remain tight as the new year begins. “Some day we will see producers start to save heifers, but it’s not happening yet,” he says. “The numbers of heifers in feedlots is staying pretty high.” That has not translated into sharply lower beef supplies, however. Peel says carcass weights are up, so the industry is actually producing more beef with fewer cattle. “When we start saving heifers things are going to get really tight,” he says. Peel says several factors are at work when it comes to the potential to expand the cow herd. He says drought is a lingering issue in several sections of the country, so producers are cautious about adding more cows to their pastures. Lower feed costs will also factor into any expansion plans, Peel says, as will lower interest rates. “Profits are good right now but not