Tight cattle supplies and firm beef demand will continue to support prices in the United States, where production is expected to decline this year and next and could remain constrained through 2028, according to David Anderson, economist with Texas A&M AgriLife Extension.
Anderson said herd rebuilding will be slow due to drought across the Great Plains, high production costs and interest rates, as well as volatility associated with trade and animal health issues. Although some signs of female retention are beginning to emerge, the process is still in its early stages.
Against this backdrop, he projected that fed cattle prices, currently around US$ 230/cwt, could rise to US$ 243-245/cwt next quarter and reach US$ 250-256/cwt in 2027. The gradual reopening of the border to Mexican cattle will increase feeder cattle supplies, but Anderson believes this will not be enough to put significant pressure on prices, partly because those animals will not reach the retail beef market until around mid-2027.
Source: Beef Magazine
