By Jamie Martin
Cattle markets are expected to remain supported in 2026 due to limited cattle supplies and continued strength in beef demand, according to CattleFax. During its annual outlook seminar at CattleCon 2026, the organization explained that tight feeder cattle availability will constrain supplies during the first half of the year.
CattleFax forecasts that prices across most cattle classes will remain steady to higher in 2026. While market conditions are favorable early in the year, risk is expected to increase later as the industry prepares for potentially larger cattle supplies in 2027. Despite this, the overall outlook remains positive.
Cow-calf producers are expected to maintain the strongest market position as the cattle cycle gradually shifts. This leverage is anticipated to support sustained profitability for several years, particularly as supply growth remains limited in the near term.
The average fed steer price for 2026 is projected at $224 per hundredweight, unchanged from 2025. Feeder steer prices are expected to trade higher, with 800-pound steers averaging $335 per hundredweight and 550-pound steers averaging $440 per hundredweight.
Beef demand showed exceptional strength in 2025, even as retail prices reached record highs. Steady consumption and strong consumer interest in high-protein foods helped maintain demand throughout the year. Beef quality has also played a critical role in supporting higher prices.
“With 84% of fed cattle grading Choice or higher and 12% grading Prime, the industry is well positioned to sustain premium pricing,” said CattleFax Vice President of Market Analysis Kevin Good. “Beef demand continues to be anchored by exceptional quality and strong consumer confidence in beef as a premium protein. Even as markets adjust and trade flows shift, the fundamentals supporting long-term beef demand remain solid.”
A large share of fed cattle continues to grade Choice or higher, with a notable portion of grading Prime. This strong quality performance supports premium pricing and long-term confidence in beef. According to CattleFax, solid domestic demand, improving beef quality, and sufficient packing capacity are expected to continue supporting profitability for the cow-calf sector as the cattle industry enters its next cycle phase.
Photo Credit: gettyimages-jacqueline-nix
Categories: National