by Andrew Griffith, Livestock Marketing Specialist
July 24, 2026
FED CATTLE
Fed cattle traded $7 to $8 lower on a live basis compared to last week. Prices on a live basis was mainly $230 to $231 while dressed prices were mainly $365 to $366.
The 5-area weighted average prices through Thursday were $230.37 live, down $8.22 from last week and $365.35 dressed, down $11.98 from last week. A year ago, prices were $231.50 live and no dressed trade.
Finished cattle prices led the cattle complex lower again this week as calf and feeder cattle prices tend to mimic the direction and magnitude of the live cattle price. Packers are reaching into their bag of tricks to pull finished cattle prices lower including slowing chain speeds and even reducing shifts when and where possible. The market has not been favorable for packers for several months while cattle feeders raked in the profits. The packer continues to lose money, but they seem to want cattle feeders to share some of those losses. There is no certainty of where prices will be a week or month from now, but the summer heat is not going to contribute positively to prices. It may be a while before prices can push higher.
BEEF CUTOUT
At midday Friday, the Choice cutout was $363.32 up $0.45 from Thursday and down $5.37 from a week ago. The Select cutout was $348.11 down $0.64 from Thursday and down $8.24 from last week. The Choice Select spread was $15.21 compared to $12.34 a week ago.
Given the inability of wholesale beef prices to hold their own the past several weeks, it is appropriate to consider the change in primal cut values the past several weeks to determine where the market is failing. The Choice boxed beef price has declined approximately $20 per hundredweight the past five weeks. During this time frame, the loin primal price has been the disappointment as it has declined $45 to $50 per hundredweight. The rib primal price has declined $15, the chuck, round, and short plate primal have declined $9, the brisket primal is down $24, and the flank primal price has declined $5. It is important to understand, the cutout price is a weighted average of cut prices based on the quantity of the carcass each cut makes up. Thus, the chuck and round make up a larger percentage of the carcass than the rib and loin. However, what is abundantly clear is consumers have pulled back on grilling items, which include the rib, loin, and brisket. Alternatively, the price of lean trim from slaughter cows remains strong as consumers shift to more ground beef products.
OUTLOOK
Based on Tennessee weekly auction market average prices, steer prices were $14 to $23 lower compared to last week, while heifer prices were $18 to $24 lower compared to the previous week. Slaughter cow prices were $1 to $2 lower this week compared to a week ago while slaughter bull prices were steady to $2 lower compared to last week. This has been a challenging week for cattle market participants as cash prices for calves and feeder cattle have plummeted with the decline in feeder cattle futures. Most feeder cattle futures contracts are trading near the life of contract lows. For instance, the August feeder cattle contract has been trading in a $35 per hundredweight range for several months and is near $340 while the upper end of the range is a little over $375. All of the deferred contracts are trading at a lower level than the August 2026 contract, and are instilling pessimism into the market place. For instance, the 2027 contracts are trading close to $320, which would indicate traders believe feeder cattle prices will decline $20 per hundredweight over the next five to six months. Before anyone makes any rash decisions as it relates to marketing calves and feeder cattle, it is important to note, the August 2026 feeder cattle contract traded below $340 in March before rallying and exceeding $375. This happened once again at the beginning of June when the same contract traded just below $336 before rallying again exceeding $375 in late June. Now the same contract is back in the cellar, and no one can predict the future. This is not to say feeder cattle futures will once again move back to $375 in the coming weeks, but it is meant to say the market has the ability to rebound from these cellar dwelling levels and recapture some of the optimism that has been in the market for many months now. The issues appear to stem from the consumer level, which then works its way back into the production phases. What we do know is cattle supply has not changed and heifer retention will remove cattle from the slaughter mix.
The July cattle on feed report for feedlots with a 1000 head or more capacity indicated cattle and calves on feed as of July 1, 2026 totaled 11.37 million head, up 2.2% compared to a year ago, with the pre-report estimate average expecting an increase of 2.2%. June placements in feedlots totaled 1.40 million head, down 2.9% from a year ago with the pre-report estimate average expecting placements down 1.2%. June marketing’s totaled 1.66 million head down 2.7% from 2025 with pre-report estimates expecting marketings down 3.0%. Placements on feed by weight: under 700 pounds down 0.9%, 700 to 899 pounds down 5.0%, 900 pounds and over down 2.0%.
ASK ANDREW, TN THINK TANK
When someone is challenged with a medical issue, they typically visit with a medical doctor to diagnose the issue. Next, the doctor will provide a treatment plan to return the person back to favorable health. However, two people with the same health challenge may not receive the same treatment plan due to differences in the people and the situation. Additionally, in most instances, it is up to the patient to do certain things to improve the probability of a successful treatment plan. The same holds true for many farming operations. For instance, two farmers may have the same weeds in their pastures. One may have no sensitive crops surrounding their pasture while the other does. Thus, the one with sensitive crops surrounding the pasture may be advised to spray a more expensive product with less efficacy on the targeted weeds due to the risk of injury to the sensitive crop relative to the person with no sensitive crops surrounding the pasture. This same thought goes to farm management and profitability. Every farm is not created equal!
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 –August $227.08 +1.68; October $222.50 +1.13; December $222.28 +1.60; Feeder cattle –August $345.33 +1.55; September $341.45 +1.60 October $336.00 +2.55; November $331.78 +2.98; September corn closed at $4.64 no change from Thursday.