By Josh Maples
Cattle markets have shown continued strength through the first three months of 2026. Spring began with the strongest calf and feeder cattle prices of any March on record. Average prices during the last week of March 2026 were up 21 to 38 percent above year-ago levels across the southeast depending on weight range and were more than double what they were just three years ago in March 2023.
The chart above shows average weekly prices for 500-600 lb. steers in Mississippi from January 2023 through March 2026. The chart below shows prices for 700-800 lb. steers in these states. There has been a clear uptrend in prices over these 3+ years including so far in 2026.
Feeder cattle supplies are at extremely tight levels. Beef demand has been exceptional in recent years. Both factors are supportive of cattle prices. The higher prices should eventually incentivize expansion, however there are few signs of that expansion occurring yet. When widespread expansion begins and producers begin retaining more heifers, there will be even fewer feeder cattle available in the short run until the larger calf crops show up.
Drought conditions have spread in recent weeks which could put a damper on expansion plans for some producers. Most of the southern U.S. is now in at least Abnormally Dry conditions as shown on the drought map below. There are many areas in D3 and some in D4. The length and severity of these conditions will impact production decisions for some producers. The FSA Livestock Forage Disaster Program will provide support for eligible producers depending on county-level drought designation.
The strong expectations for cattle prices are leading to attractive risk management opportunities for producers, including producers who have calves born in recent months. Whether it be using futures, options, or USDA Livestock Risk Protection (LRP), now is a great time to analyze price risk management tools.
Source : osu.edu