by Andrew Griffith, Livestock Marketing Specialist
February 13, 2026
FED CATTLE
Fed cattle traded $4 higher this week compared to a week ago on a dressed basis. Prices on a live basis were established but ask prices were mainly $245 to $247 while dressed prices were mainly $382.
The 5-area weighted average prices thru Thursday were $241.00 live, up $1.09 compared to a week ago and and no dressed trade. A year ago, prices were $202.84 live and $320.62 dressed.
There is no fun or enjoyment in trading something when one party knows they are pricing a loss from the start. This continues to be the case for packers as they have little to no hope for positive margins. This typically results in a slow development of cattle trade. The cattle feeder may or may not be having much fun either. The cattle feeder is certainly earning a profit on the cattle being sold today, but the cattle being purchased to refill pen space may be another story. There has been some discussion on price margins between feeders and fats, but the price margin can be wider as prices increase and still produce a profit. The challenge will come when prices plateau and then decline. It may not happen on this turn of cattle, but it will at some point.
BEEF CUTOUT
At midday Friday, the Choice cutout was $364.39 down $0.45 from Thursday and down $5.52 from a week ago. The Select cutout was $363.29 up $0.26 from Thursday and down $0.56 from last week. The Choice Select spread was $1.10 compared to $6.06 a three weeks ago.
If there is anyone who cannot win for losing then it is the packer. The price of wholesale beef simply cannot keep pace with the price of finished cattle. In the short term, this does not seem to be much of a problem, but it is a problem for the entire industry in the long-run. The value of the product being produced is based on what the consumer is willing to pay. The oddity in the beef industry is that the product produced by cattle producers is disassembled and marketed as many different products while most industries take several inputs, produce a single product and market the item as such (e.g. automobile). Alternatively, the beef industry takes a bovine and deconstructs it into steaks, roasts, ground beef, hides, tallow, and many more products. Each cut of beef and all other products have their own supply and demand fundamentals, which compounds the complexity of the market. Packers know this well and do their best to achieve positive margins. Despite their best efforts, profits all stem from the consumer and the dollars they spend.
OUTLOOK
The hope is this is the last week in which trends for feeder cattle and slaughter cows cannot be established due to the two consecutive weeks of winter precipitation in Tennessee. What was evident this week was the strength in the quantity of cattle moving through weekly auction markets in the state. Producers who wanted to market cattle were chomping at the bit to set wheels under cattle after two weeks of inactivity. The same can be said for buyers as a two-week drought of no cattle resulted in considerable interest in purchasing cattle. Though trends could not be definitively established, there is no doubt feeder cattle prices were strong this week compared to last full week of marketings. The one thing that is becoming increasingly challenging in the industry is the quantity of capital to operate at previous year levels as it relates to quantity of cattle. For example, the peak value of a 550-pound steer in Tennessee based on weekly auction average prices was $990 per head in 2022. The value of that same animal was $1,375 in 2023, $1,650 in 2024, and $2,175 in 2025. Based on the latest information for 2026 the value of a 550-pound steer is $2,420. This value change represents a 144 percent increase over five years. Thinking of it from the buyer perspective, a person purchasing 60 steers weighing 550 pounds would have invested nearly $60,000 to purchase the cattle in 2022 while now they are investing more than $145,000 for the same quantity of cattle. This is significantly more financial risk for those producers. This financial risk extends to the cow-calf producer as well in that the value of the cow-herd is much greater today than it was a few years ago. The cow-calf producer may not have paid today’s prices to retain heifers or purchase breeding females a few years ago, but they now have a more valuable asset than they did. Protecting that value is important, because the natural tendency of the market will absorb the value gain over time just like the value increased. The methods to protect that value will not be well received by most.
ASK ANDREW, TN THINK TANK
In the spirit of Valentine’s Day, what is love? The most direct answer and correct answer is a Biblical answer, and that is ‘God is love.’ Those who follow the same God as I do understand that God is much more than love. However, keeping with the focus of cattle and how our world uses the term “love,” it is common for people to say they “love” this or they “love” that. Do they actually love those things or is it actually something that simply provides them enjoyment, satisfaction, comfort, or some other feeling? The answer is most likely the latter. For instance, many readers enjoy the cattle business, because it is a way of life, source of income, provides a sense of purpose, allows one to use certain skills, provides enjoyment via caring for livestock, or any number of other reasons. Despite our enjoyment of livestock, companion animals, and other “stuff,” it is prudent to use the word “love” in a manner that is appropriate and meaningful when used. It is unfortunate the English language does not have the flexibility of Greek love: agape, philia, storge, eros.
Please send questions and comments to agriff14@utk.edu.
FRIDAY’S FUTURES MARKET CLOSING PRICES
Friday’s closing prices were as follows: Live/fed cattle –February $243.08 +0.58; April $240.63 -0.03; June $236.15 -0.10; Feeder cattle –March $366.15 +0.43; April $363.45 -0.18; May $359.43 -0.48; August $359.58 -0.15; March corn closed at $4.32 up 1 cent from Thursday.