by Andrew Griffith, Livestock Marketing Specialist
February 27, 2026
FED CATTLE
Fed cattle traded $4 lower on live basis compared to last week. Prices on a live basis were mainly $242 to $245 while dressed prices were mainly $382 to $385.
The 5-area weighted average prices thru Thursday were $243.51 live, up $2.50 compared to a week ago and $382.84 dressed, up $0.84 compared to last week. A year ago, prices were $197.74 live and $312.77 dressed.
The life of trading finished cattle is one of excitement and monotony. One day the game is hurry up and wait, and the next day people cannot trade cattle fast enough. This market characteristic stems from how quickly cattle markets can change, the fact cattle are a perishable product, and the need for cattle by the packer. Packers and feedlot managers have been extremely slow to agree on a price the past several weeks, and they are showing no signs of speeding up the process. Feedlot managers are clearly looking for a reason to ask for a higher price while packers will use any information to bid lower. Despite this weekly struggle, these parties somehow come to terms every week. This week is no different.
BEEF CUTOUT
At midday Friday, the Choice cutout was $378.97 up $1.08 from Thursday and up $12.30 from a week ago. The Select cutout was $374.23 up $3.44 from Thursday and up $13.18 from last week. The Choice Select spread was $4.74 compared to $5.62 a three weeks ago.
Wholesale boxed beef prices appeared to have some life this week with some of the strongest week-over-week gains since August. It would not be accurate to say boxed beef prices have been lifeless the past few months as they have remained historically high. However, from a comparison standpoint, they have been lifeless the past five months compared to cattle markets. As was mentioned last week, the Choice cutout has spent the past five months trading in a $30 range. With the price movement this week, the Choice cutout is now trading toward the top end of that range. March is not a month known for its superior beef demand, but it certainly could be a month in which the beef market begins to trend higher. The beef industry will begin preparing for stronger beef demand moving into the spring and summer months with grilling season being the highlight. Despite grilling season still being three months away, increased beef movement will come with the warmer weather in late March and April. There is upside potential in the beef market.
OUTLOOK
Based on Tennessee weekly auction market average prices, steer prices were $ 1to $5 higher than last week, while heifer prices were steady to $4 higher than the previous week. Slaughter cow prices were steady to $2 lower this week compared to a week ago while slaughter bull prices were steady to $1 lower compared to last week. Local auction market results were mixed this week with variability from one market to the next. This cash market action reflects the price movement in feeder cattle futures as they had a softer tone this week than many of the previous weeks. Readers should not view this as a negative statement toward calf and feeder cattle prices as prices remain strong, but prices do seem to have plateaued and mainly moving sideways instead of increasing or decreasing. It has been rare in recent years for cattle markets to spend extended time periods trading flat, which means most of the time prices are either trending lower or trending higher from the futures market perspective. Using the March feeder cattle contract as the example, the March contract opened April 2025 in the $270 to $280 per hundredweight range and then spent the next six months climbing to a life of contract high that nearly reached $380 per hundredweight. The contract then moved lower the latter half of October through the end of November falling below $300 at one point. Since that time, the March feeder cattle contract has recovered to the $360 to $370 per hundredweight range. Since the beginning of 2026, this same contract has primarily traded in the range of $355 to $370, but it has only traded in a $7 range during the month of February. As the cattle market heads into March, one can easily expect the grass cattle market to continue being the strongest segment of the market, while feeder cattle prices have a tendency to soften. The softening of feeder cattle prices in March correlates with finished cattle prices six months down the road when those cattle will come off feed in early fall. These are months with softer finished cattle prices.
ASK ANDREW, TN THINK TANK
“I want to get in the cattle business. Is now a good time to buy cattle?” This statement and question or some form of it has been posed several times recently. As any good economist answer, “It depends.” A basic principle in business or trading is to buy low and sell high. Given cattle prices are at record high levels, it would be difficult to enter this business with the thought of buying low. However, this does not mean a person cannot start in the cattle business when prices are extremely elevated from a historical perspective. What it does mean is a person has less room for error and must not be “married” to the cattle purchased. Purchasing and growing calves and then reselling them in five to six months is likely one of the lowest risk alternatives while purchasing, developing and breeding heifers is another alternative that does not carry the highest risk. Purchasing high priced females may be the most risky, but there is also a lot of potential for reward given calf prices are expected to remain extremely high the next several years.
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 –April $232.23 -4.68; June $229.15 -4.25; June $227.80 -3.78; Feeder cattle –March $355.43 -6.23; April $351.20 -7.55; May $347.20 -8.10; August $347.32 -7.98; March corn closed at $4.39 up 6 cents from Thursday.