Frigid Weather Adds to High Beef Price Pains

The deep cold across much of the U.S. pushed cattle out of grazing fields and prices to new highs this week, adding to a plethora of factors that may keep that record run going.

Several supply issues and the continued appetite of U.S. consumers for beef underpinned the recent rally in cattle futures, and the blast of cold temperatures look to push consumers to dole out more at the meat counter.

Consumers want beef, even if it is costing them. “Frozen pork and beef supplies are the tightest in over a decade on each, and the U.S. cattle inventory is the lowest since 1951,” said Karl Setzer, partner with Consus Ag Consulting.

In 2024, consumers kept eating beef, despite higher prices. Through last fall, U.S. consumers spent over $30 billion on fresh beef, up 9% from the previous year, according to data from the National Cattlemen’s Beef Association. In terms of volume, 4.6 billion pounds of fresh beef were sold through October, up nearly 4% from the same time the prior year.