[REVISION HISTORY]

US cattle market inventory and price volatility

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2026-08-13 18:12 UTC → 2026-08-18 01:27 UTC · added ~~removed~~

The US cattle market is experiencing volatility characterized by a recent price correction following a three-year bull run. Despite these price fluctuations, cattle inventory remains at historically tight levels, including a 75-year low. Analysts indicate that while drought may cause short-term price drops by forcing cow sales, the resulting reduction in replacement heifers could eventually drive prices higher. In the beef packing industry, capacity dynamics are shifting due to plant closures and new openings in Nebraska and Missouri. High packing capacity relative to limited cattle supplies has created intense competition for slaughter cattle, leading to significantly negative plant margins. For the week ending August 8, fed cattle margins averaged a loss of $203 per head, with some individual losses reaching $300 per head. More recently, cattle futures on the Chicago Mercantile Exchange have edged lower due to concerns regarding consumer demand. This downward pressure follows a drop in the University of Michigan’s Consumer Sentiment Index to 51, missing the economist forecast of 54.5. Despite these sentiment concerns, strong wholesale beef prices offered some market support; the US Department of Agriculture reported that choice beef cuts rose to $379.57 per hundredweight and select cuts increased to $364.26. In labor news, unionized Cargill workers voted to end a dispute that had halted cattle slaughtering at a facility in Fort Morgan, Colorado, since April. Meanwhile, hog futures remained relatively flat as the pork cutout value slipped to $98.75 per hundredweight.

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