The July 24 Cattle on Feed report showed a 2% increase in the inventory of cattle and calves on feed for the slaughter market, according to the U.S. Department of Agriculture’s National Agricultural Statistics Service. The report showed 11.4 million head on July 1, 2026, in U.S. feedlots with a capacity of 1,000 or more head. Heifers and heifer calves accounted for 4.25 million head, up slightly from a year earlier. Demand has been the foundation supporting higher cattle prices during the past three years and, by historical standards, remains strong. “We’re having some cost-of-gain erosion that’s going up against the feedlot, and we’re not seeing sales price expectations increase enough to offset placement prices,” Tonsor said.