by Andrew Griffith, Livestock Marketing Specialist
March 6, 2026
FED CATTLE
Fed cattle traded $2 to $3 lower on live basis compared to last week. Prices on a live basis were mainly $240 while dressed prices were mainly $380.
The 5-area weighted average prices thru Thursday were $240.00 live, down $3.51 compared to a week ago and $375.38 dressed, down $7.46 compared to last week. A year ago, prices were $196.69 live and $312.93 dressed.
This was once again a week when cattle feeders and packers struggled to agree on a price for finished cattle. The cattle feeder has the leverage from a supply standpoint, but futures traders have another idea. The April live cattle contract was trading in the low to mid $240s before coming under severe pressure the last week of February. The contract has recovered a few of the losses, but it has provided packers a reason to bid lower for cattle. The cattle feeder knows they have the leverage, but they respond like most making these types of decisions in that they know they have to move cattle, and they do not want to be caught holding the bag when prices move lower. This may be temporary, but temporary is still a risky time period.
BEEF CUTOUT
At midday Friday, the Choice cutout was $387.07 up $0.18 from Thursday and up $8.10 from a week ago. The Select cutout was $380.07 down $0.54 from Thursday and up $5.84 from last week. The Choice Select spread was $7.00 compared to $4.74 a three weeks ago.
Choice and Select wholesale beef prices have found a toe hold the past few weeks and are pushing higher. The Choice cutout price has increased more than $22 over the past three weeks while the Select cutout price has increased more than $17 over the same time period. It would be an overstatement to say it is abnormal for wholesale beef prices to begin strengthening in March, but February and March tend to be weak beef demand months. This is especially true compared to the few weeks leading up to the unofficial start of summer, which is the Memorial Day weekend when beef prices do find tremendous support. Why prices are escalating right now while cattle prices head the opposite direction is not known, but retailers, restaurants and food service may be trying to secure some beef needs before beef prices make a seasonal run to top side. This consideration is likely a stretch considering Memorial Day is 12 weeks away, but it is difficult to predict everyone’s thoughts and actions. Beef prices are strong and will likely push higher.
OUTLOOK
Based on Tennessee weekly auction market average prices, steer prices were $ 4 to $12 lower than last week, while heifer prices were $2 to $6 lower than the previous week. Slaughter cow prices were steady to $1 lower this week compared to a week ago while slaughter bull prices were steady to $1 lower compared to last week. All classes and weights of cattle hit a road block this week as the negativity in the futures market has worked its way into the cash market. As a brief update, March feeder cattle futures traded as much as $20 per hundredweight lower on Monday March 2nd as they were trading on Friday February 20th. The same contract did rebound moving through the week, and it is only trading $10 per hundredweight lower than February 20th. This brought a negative response to local auction markets where buyers decided to bid lower for cattle. This would seem to negate some of last week’s comments that lightweight grass cattle prices are expected to continue strong. Despite the softness this week, cattle ready to be turned on grass will still find tremendous support the next couple of months. The question that really needs to be answered is if this is a short-term correction, or are market participants saying cattle prices are too high? Cattle prices can only move as high as the consumer is willing to pay for them. Consumers are not purchasing cattle, but they do purchase beef. The signals consumers send down the line are then picked up by packers, cattle feeders, and local cattle buyers. This process is quicker than many may recognize as signals move quickly. Is there cause for concern with a couple of weeks of lower prices on the books? The answer at this point is no, but cattle producers should always be alert to what is occurring in the market. At the same time, cattle producers should always be managing price and market risk in some form or fashion. This does not always mean hedging with futures and options or purchasing LRP insurance, but it does mean producers should be educated enough to utilize the products available.
ASK ANDREW, TN THINK TANK
What factors are driving cattle and beef prices to the record levels in the marketplace? How can cattlemen pay these high prices for cattle? This is just a sampling of several questions in the same category asked this week. This is the brief response to these questions. Cattle and beef prices are high because the supply of cattle is relatively low compared to previous years, and consumer demand for beef is relatively strong compared to prior years. How a cattle producer can pay today’s prices is a little bit tougher question. Stocker operators, backgrounders, and feedlot managers have been paying more and more for cattle the past 12 or so months and the only thing saving them is they were always selling cattle on a higher market. They in turn would invest their profits back into other cattle that were now more expensive than the last purchase. Eventually, the market price of cattle will stop increasing, and at some point, it will decline. This will present a challenge for many in the industry. They cannot pay higher prices forever.
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 $234.58 -3.95; June $231.48 -3.80; August $229.25 -4.15; Feeder cattle –March $355.63 -6.98; April $351.63 -7.38; May $348.08 -7.45; August $348.23 -7.43; March corn closed at $4.47 up 6 cents from Thursday.