Updated
Updated · RFD-TV · Jul 22
USDA Lifts 2026 Steer Price Forecast to $251.10 as Drought Tightens U.S. Cattle Supplies
Updated
Updated · RFD-TV · Jul 22

USDA Lifts 2026 Steer Price Forecast to $251.10 as Drought Tightens U.S. Cattle Supplies

1 articles · Updated · RFD-TV · Jul 22

Summary

  • $251.10 per hundredweight is USDA’s new 2026 steer price forecast, up 94 cents, with 2027 raised 50 cents to $254.25.
  • USDA cut its beef production outlook after fewer steer and heifer slaughter numbers and lower cattle placements pointed to tighter supplies into next year.
  • 46% of the U.S. cattle inventory now sits in drought-affected areas, up from 16% a year ago, complicating herd rebuilding despite near-record cattle prices.
  • Kansas feedlot margins are projected to swing from a $485.52-per-head June profit on steers to losses of $323.52 in September and $344.76 in October as feeder and feeding costs rise.
  • That mix of tight supplies, drought pressure and weaker expected fed-cattle prices suggests elevated cattle prices may persist even as feedlot profitability deteriorates.

Insights

With beef prices soaring for consumers, why are feedlots and meat processors facing historic financial losses?
Can the American cattle industry rebuild its herd amid record drought, shrinking pastures, and new cross-border threats?