Cattle Prices Reach Record Highs as Supplies Tighten

By Andi Anderson

Cattle markets have continued their upward trajectory into the second half of 2025, with prices reaching record highs.

The weighted average cash fed cattle price in northern markets has surpassed $245 per cwt, while prices in the southern plains are hovering around $235. Live cattle futures are trading at a discount to cash, with the August contract peaking at $233.75.

Feeder cattle markets remain robust as well, with prices for 7-8 weight cattle exceeding $345 per cwt and 5-6 weight animals going above $410. These are also record high prices, driven by weaker feed grain markets and softer forage conditions.

Feeder cattle futures contracts are approaching the $345 per cwt mark, signaling continued strength in the market.

As we look toward the second half of the year, bearish news is hard to come by. The USDA’s mid-year Cattle report did not indicate clear signs of expansion, and when expansion does eventually occur, supplies will tighten further as heifers are held.

The Cattle on Feed report highlighted persistently tight fed cattle supplies, with on-feed inventories at the start of the month as tight as they’ve been since 2017. Long-fed inventories are also at their highest levels since 2017, excluding 2020, suggesting that fed supplies will continue to tighten later this summer and into the fall.

An important shift is occurring in cattle feeding dynamics, with cattle being fed for longer periods than in the past. There is a noticeable increase in the number of Prime grade cattle and fewer Select grade cattle, which presents new challenges for the beef packing industry.

These changes, combined with high-cost and low-volume plants—many built or renovated in the past five years—are expected to create economic difficulties for the packing sector.

This structural shift in the cattle feeding and packing industries may be one of the key factors that slows the rise in cattle prices, rather than competition from less-expensive pork and poultry proteins.

The coming years could see a continued tightening of fed cattle supplies and further challenges for the beef packing industry as the sector adjusts to these new dynamics.

Photo Credit: gettyimages-ahavelaar