by Andrew Griffith, Livestock Marketing Specialist
October 23, 2026
FED CATTLE
Fed cattle trade was not established at the time of press. Bids were $226 live while ask prices were $232 live and $360 dressed.
The 5-area weighted average prices through Thursday were no reported trade live and no reported trade dressed. A year ago, prices were $239.03 live and $370.41 dressed.
It is rare but not unheard of to have absolutely zero negotiated cash cattle trade leading into Friday. The reasoning for this is unknown by the industry in the short-run, but there is a good chance it has to do with boxed beef prices moving lower this week. Packers have struggled to find positive margins the past year, and the willingness to keep watching red ink spill onto the accounting desk is not high. Thus, packers are doing all they can to purchase cattle cheaper. The other side of the transaction is the cattle feeder who is willing to holdout and feed those cattle another week or two. Packers need cattle to produce revenue and feedlots need to move cattle to do the same. Maybe they can find common ground this week or maybe not.
BEEF CUTOUT
At midday Friday, the Choice cutout was $367.64 down $1.83 from Thursday and down $5.55 from a week ago. The Select cutout was $349.95 down $0.46 from Thursday and down $3.08 from last week. The Choice Select spread was $17.69 compared to $20.16 a week ago.
Domestic demand for beef is the driver of beef cutout values, but international demand for U.S. produced beef is also a determinant of beef prices. August beef export data was released two weeks ago, and this information demonstrates international demand for U.S. beef remains strong. Beef and veal exports in August totaled 436 million pounds, which was 0.6 percent lower than the previous month but 3.6 percent greater than August 2025. From a value standpoint, beef and veal export value declined 0.2 percent compared to the previous month and was 2.8 percent higher than one year ago. These may not be blistering hot numbers compared to the past several months, but the fact beef exports remain fairly steady in a high price environment demonstrates there are few substitutes for the high-quality beef products being exported. Importing countries would not continue to pay high prices if they could replace U.S. beef with similar beef from another source. The next period of support for wholesale beef will be the end of the year holidays.
OUTLOOK
Based on Tennessee weekly auction market average prices, steer prices were unevenly steady compared to last week, while heifer prices were also unevenly steady compared to the previous week. Slaughter cow prices were steady to $1 higher this week compared to a week ago while slaughter bull prices were steady compared to last week. Calf marketings have strengthened the past few weeks as cattle producers are earnestly hauling the spring born calf crop to town. There are probably several early weaned calves that have already traded hands due to dry conditions, but that does not mean cattle marketings will slow the next several weeks. Buyers can expect the quantity of freshly weaned calves to remain strong until Thanksgiving, which means there will be four more weeks of strong cattle movement. The market will slow a little between Thanksgiving and Christmas but will still have good offerings. From the viewpoint of the seller, the fall time period typically has the lowest price for calves coming straight off the cow. It would not be a terrible decision to wean and precondition these calves and market them in January. There certainly is a cost of feeding calves through part of the winter and the labor is not free, but preconditioned cattle typically command a higher price than calves coming off the cow and the market price typically bounces higher after the first of the year. Switching gears to the futures market, October feeder cattle futures peaked in late June near $370 per hundredweight before spending the next two months moving toward the $310 price point. The same contract has recovered slightly more than half of those losses since the end of August. The market has certainly been a roller coaster ride that does not appear to have a stopping point anytime soon, and this statement is made because with the exception of November, the futures market suggests feeder cattle prices will move consistently lower over the next twelve months. Fundamentals would suggest a steady market is more likely than a declining feeder cattle market.
The October cattle on feed report for feedlots with a 1000 head or more capacity indicated cattle and calves on feed as of October 1, 2026 totaled 11.37 million head, down 0.4% compared to a year ago, with the pre-report estimate average expecting an increase of 0.2%. September placements in feedlots totaled 1.78 million head, down 12.1% from a year ago with the pre-report estimate average expecting placements down 8.3%. September marketing’s totaled 1.52 million head down 6.6% from 2025 with pre-report estimates expecting marketings down 7.3%. Placements on feed by weight: under 700 pounds down 13.3%, 700 to 899 pounds down 12.4%, 900 pounds and over down 9.1%.
ASK ANDREW, TN THINK TANK
A question was asked this week concerning the need to score reproductive tracts of heifers and what value that may have. This question brought to mind several different management practices that may or may not have value depending on how that information is used to market the animals. In the case of reproductive tract scores, potential buyers of heifers may or may not even know what this means. However, for those who do understand these scores, having this information available can be the difference in a person being willing to purchase animals or dismissing the animals completely. Another example could be performing a genetic test on those females to score heifers based on several characteristics. This can be useful for producers retaining their own females but also useful when marketing open or bred heifers. It may take some education to help potential buyers understand the information, but the willingness to put in that effort will likely pay off with time.
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 –October $229.88 +0.13; December $231.13 +0.00; February $233.35 -0.10; Feeder cattle –October $348.33 +2.23; November $348.13 +1.20; January $345.48 +1.48; March $342.13 +1.63; December corn closed at $4.56 down 5 cents from Thursday.