The December US Department of Agriculture(USDA) Cattle on Feed Report shows cattle and calves in US feedlots down 6pc from last year's and placements in feedlots down 5pc from those of a year ago.
Smaller numbers are not adding up to higher prices.
According to USDA livestock analyst Shayle Shagam, everyone in the US beef industry is hurting as far as returns are concerned.
Average prices for steers are $US10 to $15 a hundredweight less than they were a year ago.
"Part of it IS that there ARE concerns about the economy. There is concern on the part of retailers on whether or not they can move that product," Shagam says.
"As a result, they are being a little bit more nervous and being a little bit more cautious in terms of their buying habits, until the holiday season comes past and they can probably reevaluate what's in their inventories."
Shagam says chicken is very plentiful and very cheap in the US, which is working into the system in terms of demand pressure on the beef side.
This all spells lower prices for everyone from the cow-calf producer to the feedlot to the processors.
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