CattleFax issues Price Outlook for 2026

Source: The National Cattlemen's Beef Association (NCBA) and CattleFax

NASHVILLE, TN - Cattle and beef prices are forecast to average steady to higher in 2026, with risk increasing later in the year as markets anticipate larger supplies in 2027.

Cow-calf producers are expected to retain the strongest leverage as the cycle turns, supporting continued profitability for several more years.

CattleFax forecast the average 2026 fed steer price at $224/cwt., steady from 2025. All cattle classes are expected to trade higher, with 800-lb. steer prices expected to average $335/cwt., and 550-lb. steer prices averaging $440/cwt. Utility cows are expected to average $155/cwt., with bred cows at an average of $400/cwt.

Many Americans desire to consume more protein. This is considered a positive trend for livestock producers. Image Credit - Wix

"The U.S. cattle and beef industry enters 2026 with strong but volatile market conditions, as historically tight cattle supplies, record-setting beef demand, and elevated policy and weather uncertainty continue to support prices, even as markets appear to near cyclical highs. Tight inventories and exceptional demand remain the dominant forces shaping the market; however, producer demographics, high input costs, and policy uncertainty point to a slow and measured expansion phase," said Mike Murphy, CattleFax chief operating officer.

2025 USDA All-Fresh Retail Beef prices are expected to average $9.25/pound, however, the continued increase in retail prices has CattleFax predicting consumer resistance to further price increases, even as demand is supported by a strong economy, beef quality and dietary focus on protein.

"As we look ahead, several factors will shape the trajectory of the beef industry. The potential threat of New World Screwworm and the status of Mexican feeder cattle imports is something we're watching closely," Murphy said. "At the same time, shifts in packing capacity are rebalancing market leverage. Finally, the dairy industry will continue to be a growth industry supplying more cattle to the beef industry, following strong financial performance in 2025."

Despite near-term volatility, the long-term outlook remains positive. Strong domestic demand, improving beef quality, and sufficient packing capacity are expected to continue supporting profitability for the cow-calf sector as the industry moves into the next phase of the cattle cycle.