The nation's beef cattle herd may be shrinking at a faster pace than some had expected. It may not be definitive at all through Friday's new USDA report of cattle feed lot numbers.

"The signals continue to point towards smaller cow numbers[now and into 2022]."

USDA Livestock Analyst, Shayle Shagam said placements into feedlots during September just under 2.2 million head, down 3% from September a year ago.  Shagam said most analysts expected placements to be 1% higher.

"The fact that it came in 3% lower from the stand point of a market sentiment; we'll probably have a bullish sentiment on fed cattle."

The October 1 feedlot inventory was at 11.6 million head, down 1% from last year.  But more telling, he noted, the number of heffers and heffer calf's up 2% from a year ago, making up a higher percentage of total inventory and, of course, that's, "a signal that producers are not retaining female stock with the intention of breeding them in the spring."

All in all, almost all the numbers point to a shrinking beef cattle herd and less beef production, leading to higher prices next year.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekmedia.com

More From PNW Ag Network