The cattle herd is at historic lows and herd rebuilding has continued to be put off. Profitability is the key factor, and near record cattle prices have incentivized producers for the past couple of years pushing off herd rebuilding. To date, heavier carcass weights have helped mitigate some of the effects, but they are inadequate to change the supply and demand fundamentals. Higher profitability levels incentivize expansion, but that is also a factor of timing. There are two proven trends in herd expansion, more replacement heifers and the purchase of bred heifers. One factor contributing to the contraction in the market is that heifers are still worth more in the feedlot than on pasture. Record wholesale cattle values continue to incentiv...