During their annual outlook seminar at CattleCon 2026, CattleFax Vice President of Market Analysis Kevin Good said cattle availability will remain constrained in the first half of the year due to limited feeder cattle supplies. 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 forecasts the average 2026 fed steer price at $224/cwt., steady with 2025. All cattle classes are expected to trade higher, with feeder steer prices projected to average $335/cwt. for those weighing 800 lbs. and $440/cwt. for 550 lb. steers.
Retail beef demand remained historically strong in 2025, with record prices supported by steady consumption and exceptional product quality. Good said consumer preferences continue to favor high-protein, nutrient-dense foods, reinforcing demand even as higher prices move through the supply chain.
“With 84% of fed cattle grading Choice or higher and 12% grading Prime, the industry is well positioned to sustain premium pricing,” he noted. “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.”
Despite near-term volatility, the long-term outlook remains positive. According to CattleFax, 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.
Click here to see more...