Litter formed of extruded pellets containing water soluble binder sufficient to self-clump when wetted producing pellet clumps having a clump retention rate of at least 90% and which shrink after clump formation during drying producing a clump pulls away from any contacting solid surface minimizing adhesion therebetween. Such clumps preferably also have a crush strength of at least 15 PSI when dry. Pellets preferably contain water-soluble binder formed of starch physically modified during extrusion that solubilizes when wetted to facilitate clumping while opening the interior of the pellet improving absorption capacity. A preferred litter is formed of a mixture of extruded pellets of different sizes producing litter composed of extruded pellets falling within a plurality of different size ranges with the smaller sized pellets being fines that cause horizontally extending clumps to form on top of the litter.