Tight Supplies and Strong Demand Push Live and Feeder Cattle Markets Higher
Livestock analysts say the cattle markets are responding exactly the way they like—with a clean, straightforward story. Tight supplies paired with strong demand are giving both live cattle and feeder cattle contracts a significant lift as the industry moves deeper into the marketing year.
As analysts put it, “markets love a clean story and they’re getting it right now in live cattle and feeder cattle. Tight supplies, surging demand.” After what appeared to be seasonal lows forming last week, the market has reversed course in a stronger-than-expected move higher.
Seasonal Lows Give Way to Strong Market Recovery
Many traders believed cattle prices could drift lower, but the opposite occurred. Analysts noted, “After what looks like seasonal lows put in last week at a time when many thought market could easily work lower, here we are.”
Both February live cattle and January feeder cattle have surged back toward the highs seen in late October. This rapid recovery is catching attention across the cattle sector.
Price Momentum Builds for Key Contracts
Last week’s lows—a critical reference point for many market watchers—are helping chart the next upside targets. Analysts highlighted, “Last week’s low, February live cattle near 204 and January feeder cattle near 300, putting the February live cattle up to 230 next and January feeder cattle looking at 340 next.”
These projected levels suggest continued bullish momentum as supplies remain historically tight and beef demand pushes higher both domestically and internationally.
Market Outlook: Optimism With an Eye on Fundamentals
With cattle supplies not expected to grow in the near term, the broader market tone remains supported. If demand continues its upward trajectory, price projections could remain firm heading into early 2026.
For producers, the current rally provides marketing opportunities, while feeders and packers navigate the challenges of elevated input costs and limited inventory.
Audio Reporting by Mark Oppold for Southeast AgNet.