by Andrew Griffith, Livestock Marketing Specialist
April 24, 2026
FED CATTLE
Fed cattle traded $2 lower on a live basis compared to last week. Prices on a live basis were mainly $245 to $247 while prices on a dressed basis were largely $385 to $387.
The 5-area weighted average prices thru Thursday were $246.00 live, down $2.08 compared to a week ago and $386.00 dressed, down $2.28 from last week. A year ago, prices were $211.05 live and no dressed trade.
It appears cattle feeders and packers have come to the conclusion that waiting to trade cattle at the end of the week is not always the most advantageous decision for either party. This week’s change in price is in lockstep with the change in live cattle futures. The basis in the South is negative, which is not surprising, but there is a good chance the basis for cattle in the North will improve as grilling season develops. Cattle on feed numbers reported last week seemed to be neutral for both packers and feeders. There may be some concern from the standpoint that cattle are not moving through the system very quickly. It is probably advantageous for cattle feeders and packers to slow movement with challenging margins.
BEEF CUTOUT
At midday Friday, the Choice cutout was $387.16 up $3.66 from Thursday and up $5.94 from a week ago. The Select cutout was $384.96 up $2.38 from Thursday and down $7.60 from last week. The Choice Select spread was $2.38 compared to negative $3.86 a week ago.
The Choice Select spread remains narrow as the beef market heads into the last week of April. One would think the price spread would begin to widen as the market is moving toward the brink of the grilling season. However, the sign of that widening has yet to present itself. It is important to remember the price of a good is determined by supply and demand. As summer grilling season approaches, demand for Select beef tends to be softer relative to Choice grade beef when compared to the winter months. However, the demand side is not the story here. The supply side is the driver of change. From 2021 through 2025, about 13 percent of the beef graded in February was Select. In 2026, just under 9 percent of the beef graded in February was Select. Thus, nearly 91 percent of the beef graded that same month was Prime or Choice. There are markets that prefer Select grade beef, and there is less of it available due to less beef being produced and due to a lower quantity of beef grading Select. This certainly can drive the price of Select beef higher.
OUTLOOK
Based on Tennessee weekly auction market average prices, steer prices were $3 to $10 lower than last week, while heifer prices were steady to $4 higher compared to the previous week. Slaughter cow prices were $1 to $3 higher this week compared to a week ago while slaughter bull prices were steady to $1 higher compared to last week. Market participants are displaying some mixed signals with steer calf values lower and heifer calf values higher. It is difficult to decipher, understand and explain this price movement with much certainty. One thought is producers are slowing down on purchasing grass cattle as the market moves closer to summer. Most grass cattle buyers are purchasing for spring and summer grazing programs, and a large portion of those purchases are made from February through April. Thus, if buyers are slowing their purchases, then this could be why steer prices are lower. At the same time, heifer values may be higher in the same breath due to producers hoping to increase the quantity of breeding stock. Another thought for the day is how drought is influencing decision making as it relates to purchasing cattle. In Tennessee and across large portions of cattle producing country, drought has been persistent and certainly having a negative impact on spring pasture production as well as on hay production. Could producers be slowing their purchase rate due to fears of not having adequate forage resources? If grazing operations are not willing to purchase cattle, then backgrounding operations and feedlots are more likely to purchase those animals. Fewer people in the market on the purchasing side could depress prices, but demand would still be high for these animals. The futures market is contributing to the uncertainty of cattle prices. Feeder cattle futures are trading approximately $10 per hundredweight lower that 10 days ago when they peaked. The price decline is not terrible, but it does influence one’s willingness to pay. This is an ever-evolving market with serious entertainment value.
ASK ANDREW, TN THINK TANK
A question was asked this week concerning the pricing of freezer beef. One comment made in this discussion is many producers do not realize they are losing money relative to their alternative marketing opportunities! This may or may not be accurate, but it is important for producers to know how to price freezer beef to make a profit on the finishing phase of cattle production. The best place to start with valuing animals is to determine the value of the calf at the time a person would traditionally sell the animal such as at weaning or as a true yearling calf. For instance, a 525 pound steer would be worth approximately $2,600 today or an 800 pound steer would be valued close to $3,100. This provides the starting point. A producer then needs to add the cost of feed to grow an animal to 1,300 pounds or more. Assuming the starting point is the 800 pound steer and the cost of gain is $1.00 per pound, a person would have $3,600 of value. Labor, risk premium and profit should be added to this total to determine final pricing.
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 $248.30 +1.23; June $245.23 +1.73; August $241.65 +1.50; Feeder cattle –May $360.90 +2.03; August $361.78 +2.43; September $359.75 +2.68; October $357.53 +2.93; May corn closed at $4.55 down 1 cent from Thursday.