by Andrew Griffith, Livestock Marketing Specialist
July 10, 2026
FED CATTLE
Fed cattle traded $7 lower on a live basis compared to last week. Prices on a live basis was mainly $248 while dressed prices were mainly $391 to $393.
The 5-area weighted average prices through Thursday were $248.00 live, down $7.15 from last week and $391.84 dressed, down $10.68 from last week. A year ago, prices were $235.14 live and $379.16 dressed.
Cattle feeders and packers were a little more active this week as cash trade picked up speed on Thursday. Packers were willing buyers as live cattle futures traded softer throughout the week, which supports their needs as wholesale beef prices continue to be stagnant. Cattle feeders on the other hand received much lower prices compared to last week, but basis is extremely strong. Basis is $13, which means the cash price is $13 per hundredweight higher than the nearby live cattle futures contract. Cattle feeders have an incentive to sell cattle when basis is in their favor, but they also have to be cognizant of how any price risk management strategies impact closeouts or profitability.
BEEF CUTOUT
At midday Friday, the Choice cutout was $383.90 up $3.09 from Thursday and down $3.75 from a week ago. The Select cutout was $369.65 up $6.16 from Thursday and up $0.45 from last week. The Choice Select spread was $14.25 compared to $18.45 a week ago.
This was a disappointing week from a beef standpoint as restocking of beef counters would have been expected following the long holiday weekend. However, wholesale beef prices were unable to push higher as consumers continue to be squeezed as it relates to discretionary spending. The primary agitator pulling dollars away from beef is the energy sector. Fuel prices impact the cost associated with every day driving, but it also impacts the cost of other travel such as vacation. Thus, there are fewer discretionary dollars available for many consumers. This has certainly resulted in consumers trading down to lower valued beef products, which is the result one would expect from higher beef prices alone. However, the external forces are encouraging a greater propensity to trade down to lower valued beef items for many consumers. This information does not speak badly toward beef demand as demand remains strong. What this information does is highlight the fact that beef is impacted by more than its own price. In other words, the price of other goods does impact beef movement.
OUTLOOK
Due to the Independence Day holiday last week when Tennessee weekly auction markets were closed, there is no price data to compare this week’s prices to. Despite the lack of weekly auction price data, there was plenty of price action in the futures market. Using August feeder cattle futures as an example, the market has done more bouncing around than a five-year old kid on a pogo stick. Just like that same child on a pogo stick who will fall if he or she bounces long enough, feeder cattle futures seem to have fallen as prices are lower this week compared to last week. One would expect the nearby feeder cattle futures contract to consolidate its trading range, but the August contract has traded in a $42 per hundredweight range since the beginning of June. This is a rather large range of prices for the front month. The trading range has been $24 per hundredweight in just the past two weeks. This type of price fluctuation makes price risk management decisions more difficult as loss aversion decision making often kicks in. Loss aversion is a behavioral economics term where an individual feels more emotional pain from a loss than joy from an equivalent gain. In other words, a person has more fear of losing value in their animals than excitement when value is gained. Shifting gears slightly to discuss what did happen in the cash market in Tennessee this week is a focus on load lots of cattle that traded. Several loads of steers traded this week ranging between 870 and 925 pounds with per head values ranging from $3,036 to $3,210. Loads of steers selling 800 pounds and lighter were close to $2,900 per head. Despite feeder cattle futures experiencing weakness the past couple of weeks, the cash price of feeder cattle remain resilient as cash prices are trading with a strong positive basis compared to futures. One would expect the cash price and the futures price to begin converging sooner rather than later, but recent history says convergence may not occur until the eleventh hour.
ASK ANDREW, TN THINK TANK
“Integrity” is defined as “firm adherence to a code of especially moral or artistic values” (Merriam-Webster). In other words, it is being incorruptible. In the past week or two, there have been situations in which people have displayed tremendous integrity while other instances have been prime examples of a lack of integrity. One of the great things about the cattle industry is the flexibility in production and how business is conducted. This is one aspect of the business that makes it attractive to independent minded people. However, this characteristic can also lead to challenges as it is important for a person to know with whom they are doing business. Believe it or not, there are individuals who are dishonest or succumb to temptation to take advantage of another individual. These instances are few and far between as most people in the industry depend on their integrity to do business for many years. However, it just takes one bed experience to ruin and business and leave a bad taste in a person’s mouth.
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 $235.20 -0.05; October $230.55 -1.05; December $230.28 -1.28; Feeder cattle –August $354.60 -1.55; September $351.03 -1.98 October $347.35 -1.98; November $344.03 -1.85; July corn closed at $4.38 up 10 cents from Thursday.