by Andrew Griffith, Livestock Marketing Specialist
June 18, 2026
FED CATTLE
Fed cattle trade was not established. Asking prices on a live basis were $260 while bid prices on a live basis were mainly $253 to $254.
The 5-area weighted average prices through Wednesday were no reportable trade live and $405.60 dressed, no change from last week. A year ago, prices were $236.32 live and $376.65 dressed.
With no trade occurring through the first four weekdays, it is difficult to provide much competent analysis on the finished cattle market. The only thing that one may could say is that cattle feeding margins are looking thin with feeder cattle and live cattle prices where they are. The June live cattle futures market price increased nearly $6 per hundredweight this week, which would be nearing $100 per head increase in value. This does not mean live cattle will trade $6 higher than last week’s cash trade, but one would venture a guess that cash live cattle prices will increase compared to a week ago when trade does take place. The guess is most cash trade will occur Friday as packers and feedlot managers try to agree on a price.
BEEF CUTOUT
At midday Thursday, the Choice cutout was $393.27 down $1.23 from Wednesday and up $0.16 from a week ago. The Select cutout was $374.98 down $2.28 from Wednesday and up $1.00 from last week. The Choice Select spread was $18.29 compared to $19.13 a week ago.
The story on boxed beef prices this week is a rerun of the story from last week and the week before and so on. Consumers continue to support boxed beef prices at the current level, but the packer is unable to push prices higher as the consumer has clearly said there is enough beef at this price. This does not mean demand is soft or weak. What it means is the consumer has stated their demand and this is the price they are willing to pay. This is valuable information for beef industry participants during the summer grilling season when demand tend to be at its apex. The continuation of strong import of beef is also valuable information as consumers do not appear to have slowed ground beef consumption. The versatility of ground beef as hamburger, meatloaf, taco meat, chili, and several other entrees is what keeps it moving. Consumers tend to like the price point and the fact it can be used for several different meals compared to other beef items. This does not mean they will not purchase steak, but ground beef is less expensive and offers various eating experiences.
OUTLOOK
Based on Tennessee weekly auction market average prices, steer prices were $3 to $10 lower compared to last week, while heifer prices were steady to $6 higher compared to the previous week. Slaughter cow prices were unevenly steady this week compared to a week ago while slaughter bull prices were $1 to $4 higher compared to last week. Over the past two weeks, August feeder cattle futures have recaptured $25 to $26 per hundredweight of the losses experienced in May and the first couple of days of June. Cash feeder cattle prices did decline during this time as well, and the decline in cash was not a matter of fundamentals but simply following futures traders to lower price levels. This type of price action can be detrimental to operations selling cattle when the market is stressed as it has been the past several weeks. Alternatively, selling cattle in the market today can be advantageous as cash prices have been supported with the recent rebound in feeder cattle futures. It is difficult to predict what will happen next, but what is more difficult is predicting when it will happen. For instance, the probability is high that feeder cattle futures will decline once again. This may or may not happen between now and the end of summer, but the chances of the market staying at elevated levels throughout the next 12 months is unlikely. Thus, there is a good chance prices will decline once again. When that will be is not known at this time, but when it does happen, it can occur abruptly. This is the reason price risk management is encouraged. The hope is price risk management is a production cost, but it could come in handy when the market softens for a few weeks or months. Speaking directly to the cash market, the yearling cattle market and the video sale market will be hot the next couple of months. There should be a large quantity of yearling type cattle marketed the next eight weeks as well as lighter weight cattle marketed for fall delivery that will demonstrate the state of the cattle market. This will be interesting information to consume.
The June cattle on feed report for feedlots with a 1000 head or more capacity indicated cattle and calves on feed as of June 1, 2026 totaled 11.68 million head, up 2.1% compared to a year ago, with the pre-report estimate average expecting an increase of 2.5%. May placements in feedlots totaled 1.70 million head, down 9.7% from a year ago with the pre-report estimate average expecting placements down 6.0%. May marketing’s totaled 1.55 million head down 11.8% from 2025 with pre-report estimates expecting marketings down 10.8%. Placements on feed by weight: under 700 pounds down 8.2%, 700 to 899 pounds down 12.7%, 900 pounds and over down 3.2%.
ASK ANDREW, TN THINK TANK
What is the cost of feeding hay with inadequate quality? This question stems from several hay fields being cut late due to frequent rain events. The answer depends on what class of cattle the hay is being fed to and if any supplement is being added. Dry cows do not have as high a nutrient need as lactating cows. Thus, fall calving herds need higher quality hay than spring calving herds. Knowing the exact cost of failing to supplement inferior hay is difficult as the cost will depend on just how poor the nutritive quality is. Regardless, poor quality hay can result in calves weaning at lighter weights and a lower pregnancy rate when rebreeding cows during the winter months. Poor quality hay for spring calving herds generally shows up in late winter when cows begin calving. The impacts may be less evident depending on when spring grazing can begin. Feeding poor quality hay to weaned calves results in lower average daily gain if it is the primary feedstuff, but low nutrient hay is not as big of a deal if its primary purpose is providing roughage for high nutrient rations.
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 $254.80 -0.93; August $246.63 -2.23; October $239.98 -1.88; Feeder cattle –August $366.60 -0.83; September $364.68 -0.98 October $361.75 -1.10; November $358.55 -1.08; July corn closed at $4.18 down 4 cents from Thursday.