by Andrew Griffith, Livestock Marketing Specialist
May 1, 2026
FED CATTLE
Fed cattle traded $9 to $10 higher on a live basis compared to last week. Prices on a live basis were mainly $255 to $256 while prices on a dressed basis were largely $399 to $400.
The 5-area weighted average prices thru Thursday were $255.02 live, up $9.02 compared to a week ago and $399.07 dressed, up $13.07 from last week. A year ago, prices were $220.80 live and $349.33 dressed.
What a week for the finished cattle market! The price per head increased about $150 compared to the previous week, which represents a four percent increase in value compared to last week. A four percent increase in value is a large increase when finished cattle prices are staring at record levels. This price increase was certainly a welcome sign for cattle feeders who can turn around and put it toward purchasing the next set of feeder cattle, but it is squeezing the packer beyond the tough times they are already navigating. This further supports just how much leverage the cattle feeder has on the packer, and it could continue to shift the cattle feeders’ way when heifer retention increases.
BEEF CUTOUT
At midday Friday, the Choice cutout was $389.28 down $0.24 from Thursday and up $2.12 from a week ago. The Select cutout was $384.96 down $1.65 from Thursday and up $1.56 from last week. The Choice Select spread was $2.76 compared to negative $2.38 a week ago.
The beef market has to be one of the most dynamic markets in existence. In the United States, we have several quality grades of beef based on intramuscular fat (marbling) with the three primary grades being Select, Choice and Prime. The consumer has made a shift the past five to six years to demanding higher quality grades (Choice and Prime) than what has been historically recorded. Due to this shift, the cattle industry has shifted to genetics that result in carcasses with a greater tendency to grade Choice and Prime as well as feeding cattle to heavier weights, which also plays a role in quality grade improvements. As the price of beef has escalated, beef consumers have continued to purchase high quality beef. The question from producers has always been, “at what price will the consumer stop buying or change what they purchase?” This depends on many factors and has not reared its head at this point, but as consumers are forced to spend more of their disposable income on $4 plus fuel, a shift is always possible.
OUTLOOK
Based on Tennessee weekly auction market average prices, steer prices were $3 to $9 higher than last week, while heifer prices were steady to $4 higher compared to the previous week. Slaughter cow prices were $2 to $4 lower this week compared to a week ago while slaughter bull prices were $2 to $4 lower compared to last week. Feeder cattle and the calf market have followed the trajectory of feeder cattle futures the past couple of weeks. Using May feeder cattle futures as the example, the May contract peaked near $375 on April 14th before losing $17 per hundredweight over the next week. The market has since rebounded and is trying to test like of contract highs. This is exactly what has happened in the cash markets in Tennessee. The price of most classes of calves and feeder cattle last week were down sharply from the previous week and those losses were regained this week based on reported auction data. This is a prime example of why it is difficult to time the cattle market when buying or selling. There are many cattle producers who worry themselves over when to sell the calf crop and if market prices increase or decrease the following week then they consider it a victory or a defeat. Cattle markets have always been inherently volatile to some degree. There are statistical methods to measure such volatility, but that value means little to nothing for a producer who markets calves a couple of weeks out of the year. What matters to that producer is the price received, and if they were profitable or not. In today’ price environment, a small percentage change in price can result in a large dollar per head change in total value. A 10 percent decline when the calf price is $500 per hundredweight for a 500-pound calf is $250 per head compared to only a $50 per head decline when calf prices were $100 per hundredweight. Market participants who track the cattle prices consistently are fulfilling a necessary condition for success, but it is not always sufficient, which means more conditions need to be met.
ASK ANDREW, TN THINK TANK
Is using price risk management in cattle production worth the cost? “Does a tree cast a shadow on a sunny day?” That may sound like a snarky response, and it is to some degree. However, price risk management in cattle production is a worthwhile expense if used correctly, and it is just an expense if used incorrectly. It could be compared to providing a vaccine in the correct manner versus administering a vaccine inappropriately. Futures, options and LRP are the three price risk management tools available to all cattle producers in the United States. There is an appropriate use for all three tools and many inappropriate uses that result in money spent. Some key factors to remember with all three alternatives is to know what price will achieve the desired outcome, they all have a cost, and it is difficult to successfully utilize something that one knows nothing about. There are numerous resources to learn about these tools, and I am one of those resources.
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 –June $253.00 -1.00; August $247.83 -0.85; October $242.45 -1.03; Feeder cattle –May $371.40 -1.25; August $372.18 -1.35; September $370.70 -1.28; October $368.60 -1.15; May corn closed at $4.68 up 4 cents from Thursday.