What beef producers should know as cattle prices soar

Cattle markets continue to march higher in 2026, driven by limited inventories and strong demand.

Lightweight calves and stockers were more than 50% higher in late February than one year ago, with heavy feeder prices up over 40% year over year. Fed cattle prices are up about 24% year over year.

Wholesale boxed beef prices jumped sharply in the last week of February, as strong beef demand continues to fuel higher prices.

The January cattle inventory numbers confirmed the industry’s continued contraction. The all-cattle-and-calves inventory is currently 86.16 million head, down 9.0% from the cyclical high in 2019.

The Jan. 1 beef cow inventory is 27.61 million head, the smallest beef cow herd since 1961. It is down 12.7%, or 4.03 million head, in the past seven years.

This year is likely to be the cyclical inventory low, marking 12 years since the previous low in 2014. Limited cattle inventories will continue to be a major driving fundamental in cattle markets in 2026 and beyond.

The 2025 calf crop was 32.9 million head, the smallest total calf crop since 1941. The calf crop has gotten smaller for seven years after peaking in 2018.