Supply-side factors at play in the cattle sector

ZISK
Sep 30
1 min read

As we move into the fall season, supply-side factors are at play in the cattle sector. The U.S.-Mexico border remains closed to cattle imports as the New World screwworm (NWS) is inching closer. Cattle on feed on Sept. 1 were down double-digits, but cattle continue to remain on feed for a longer number of days, resulting in rising dressed weights. Cattle marketings and placements in August dropped, highlighting continued tight cattle supplies. These supply-side factors point toward strong prices in the near term.

Last week, the USDA-Animal & Plant Health Inspection Service (APHIS) reported a case of NWS less than 70 miles from the U.S.-Mexico border. Since the last reported case on July 9, 2025, in Veracruz, Mexico, these pests managed to travel more than 300 miles north in less than three months. This threat remains a fluid situation, but from a supply perspective, the border with Mexico remaining closed due to NWS will continue to keep supplies tight in the near term.

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