by Andrew Griffith, Livestock Marketing Specialist
June 26, 2026
FED CATTLE
Fed cattle trade was not well established. A few cattle had traded on a live basis at $258 while dressed prices were mainly $408 to $410.
The 5-area weighted average prices through Thursday were $258.00 live and $408.00 dressed, up $2.40 from last week. A year ago, prices were $236.32 live and $376.65 dressed.
Why do business when you can choose to not do business? This seems to be the motto of cattle feeders and packers this week. It seems to be a motto that is catching traction and occurring on a regular basis. Neither party is excited about the prices they are paying for inputs and what they are getting paid for outputs. The packer is clearly continuing to lose money on every animal that moves through the facility. At the same time, the cattle feeder continues to pay strong prices for feeder cattle to replace the cattle going to slaughter. The swap may have a few dollars of profit in it, but it is simply not a large enough profit to cover the risk being incurred. The lack of cash trade says packers are meeting obligations with cattle they have already spoken for.
BEEF CUTOUT
At midday Friday, the Choice cutout was $392.10 down $4.22 from Thursday and down $1.17 from a week ago. The Select cutout was $372.41 down $2.33 from Thursday and down $2.57 from last week. The Choice Select spread was $19.69 compared to $18.29 a week ago
Boxed beef prices remain at historically strong price levels, but may industry participants would call the price action underwhelming since wholesale boxed beef prices have failed to make any headway through the strongest months for beef demand. The grilling season has certainly not pushed wholesale prices higher. From a 30,000 foot view, one would only say the grilling season demand has held boxed beef prices steady. If grilling demand is truly what is holding boxed beef prices at current levels then that does not bode well for what will happen to beef prices heading into October and November. The beef industry may have to construct a promotional effort to support prices for Halloween. Maybe the tomahawk steak could lean into the scary part of Halloween. It may even be important for the beef industry to try to gain some of the Thanksgiving plate in November. These may be unnecessary thoughts and tactics, but if all demand is doing right now is holding par then there could be challenges in the near future.
OUTLOOK
Based on Tennessee weekly auction market average prices, steer prices were $6 to $14 higher compared to last week, while heifer prices were $2 to $7 higher compared to the previous week. Slaughter cow prices were unevenly steady this week compared to a week ago while slaughter bull prices were steady compared to last week. With the rebound in feeder cattle futures, calf and feeder cattle prices have roared back to life. This may be good or it may be bad depending on a person’s position as a buyer or seller in the near term. For those selling 50,000 pound loads, prices appeared favorable this week. Three loads of heifers weighing between 593 and 639 pounds traded through Tennessee weekly auction markets this week with the average value per head being between $2,450 and $2,562. One load of 945 pound heifers were traded with the average value per head at $3,029. Several loads of steers also traded hands in Tennessee weekly auction markets with heavy eight weight cattle between $3,040 per head and $3,114 per head. One load of 993 pound steers traded for $3,324 per head while a load of 1,095 pound steers traded for $3,477 per head. These values for cattle being placed on feed have not fluctuated as much as feeder cattle futures contract prices have, but the cash price being received indicates demand for feeder cattle remains strong. Despite cattle slaughter rates slowing and cattle “backing up” in the feedlot, most feedlots have plenty of pen space to place cattle, which means they are active buyers in today’s market.
As has been said several times previously, there is no reason to expect the bottom to fall out of cattle prices in the next few years. There is potential for the market to soften and strengthen at different times, which is typical of most commodity markets. However, the support for the cattle market is driven by strong consumer demand for beef and the long biological component associated with growing beef supply through more animals in the breeding herd.
ASK ANDREW, TN THINK TANK
What are you waiting on? This question along with its answer is a double-edged sword. When farm work is being conducted, timing of when that work is being performed can be important. In other instances, timing is not as important as simply getting the job finished. For instance, during the summer, it is easier to gather and work cattle in the cool of the morning compared to the middle of the day when cattle are in the shade and attempting to stay cool. On the other end of the spectrum, there are many chores where timing is more flexible such as clipping pasture. There are times when strategically waiting for specific conditions is important such as applying herbicide to pastures. There is a Biblical example of when King Saul made an unlawful burnt offering by failing to wait on Samuel to arrive and make the offering. This marked the beginning of the end of his kingship. Many of the timing decisions in agriculture do not hold the same weight as King Saul’s decision, but there are times to be patient and there are times to move. Knowing the difference important.
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 $257.45 +0.05; August $245.83 -1.40; October $239.20 -1.43; Feeder cattle –August $369.85 -3.45; September $367.68 -3.70 October $364.60 -3.75; November $361.38 -3.88; July corn closed at $4.13 down 2 cents from Thursday.