Cattle Market Outlook: What Investors Need to Know in 2025

As we step into 2025, investors in the cattle and beef industry are eagerly awaiting several key reports that could significantly impact the market. Farmers and consumers alike should stay tuned to these upcoming reports to gain insights into the price trends for the year ahead. Chad Smith, a reporter for a local news station, recently spoke with Bernt Nelson, an economist with the American Farm Bureau Federation, to discuss the upcoming reports and their potential impact on the cattle market.

Nelson highlighted three major reports that investors should keep an eye on:

1. Cattle on Feed Report (January 25, 2025): This report will provide an indication of the number of cattle available for placement during 2025, as well as producer intentions for retaining heifers for addition to the breeding herd. Investors will be looking for signs of herd expansion or contraction, which can impact future beef supplies and prices.

2. Annual Cattle Inventory Report (End of January 2025): This report is expected to show a decrease in the overall cattle inventory, with some analysts anticipating a decline to around 86.5 million head. This would be the fewest cattle in 73 years, indicating tighter supplies and potentially higher prices.

3. Cold Storage Report (January 31, 2025): This report will provide information on the amount of beef, pork, and poultry in cold storage, offering insights into demand and supply dynamics. Investors will be interested in the beef inventory levels, as higher inventories could indicate increased supplies and potentially lower prices, while lower inventories might suggest tighter supplies and higher prices.

Nelson also noted that consumers are feeling the effects of inflation, with beef and veal prices up about 5.4 percent. This increase in beef prices, coupled with the ongoing exhaustion from inflation, may lead to a decrease in consumer demand for beef. Consumers may seek more affordable protein alternatives, such as pork or chicken, to offset the higher cost of beef. This shift in demand could potentially lead to a decrease in beef consumption, which would in turn affect the cattle market.

Investors should pay close attention to these upcoming reports, as they could provide valuable insights into the cattle and beef industry's supply and demand dynamics. A decrease in the overall cattle inventory and lower beef inventories could indicate tighter supplies and potentially higher prices, making the industry more attractive to investors. Conversely, higher inventories might suggest increased supplies and potentially lower prices, which could discourage investment.

In conclusion, investors in the cattle and beef industry should stay informed about the upcoming Cattle on Feed, annual cattle inventory, and cold storage reports. These reports could provide valuable insights into the market's supply and demand dynamics, helping investors make informed decisions about their investments in the cattle and beef industry. By staying up-to-date with the latest market trends and reports, investors can better navigate the ever-changing landscape of the cattle and beef market.