DAILY CATTLE MARKET BRIEFING
February 5, 2026
MARKET SENTIMENT: Strongly Bullish (9/10)
- Record low cattle inventory numbers driving extremely tight supplies
- Strong domestic demand despite high retail prices
- Continued supply constraints from plant closures and weather disruptions
KEY PRICE TRENDS:
- Live Cattle: Feb futures at $240.525, Apr at $241.800
- Feeder Cattle: Mar futures at $370.075, Apr at $367.500
- Choice Cutout: $368.02 (-$2.69)
- Cash cattle trading $5 higher at $240-241 live, $375-377 dressed
TOP 3 NEW DEVELOPMENTS:
1. USDA January 1 Cattle Inventory confirms lowest total herd (86.2M head) since 1951 and lowest beef cow numbers (27.6M) since 1961
2. Tyson plant closure continues impacting slaughter capacity, with weekly kills at 529,000 head (-73,000 vs last year)
3. Quality grades hitting all-time records with 88.6% grading Choice or higher, putting pressure on premium programs
OUTLOOK:
Ranchers should expect continued strong prices through 2026 based on:
- Minimal herd rebuilding indicated by only 1% increase in replacement heifers
- Reduced slaughter capacity constraining throughput
- Strong domestic demand despite record retail prices
- Weather challenges potentially further limiting production
Producers should focus on maximizing production efficiency while these historically high prices persist, but also prepare for eventual market correction when significant herd rebuilding begins.
February 5, 2026
MARKET SENTIMENT: Strongly Bullish (9/10)
- Record low cattle inventory numbers driving extremely tight supplies
- Strong domestic demand despite high retail prices
- Continued supply constraints from plant closures and weather disruptions
KEY PRICE TRENDS:
- Live Cattle: Feb futures at $240.525, Apr at $241.800
- Feeder Cattle: Mar futures at $370.075, Apr at $367.500
- Choice Cutout: $368.02 (-$2.69)
- Cash cattle trading $5 higher at $240-241 live, $375-377 dressed
TOP 3 NEW DEVELOPMENTS:
1. USDA January 1 Cattle Inventory confirms lowest total herd (86.2M head) since 1951 and lowest beef cow numbers (27.6M) since 1961
2. Tyson plant closure continues impacting slaughter capacity, with weekly kills at 529,000 head (-73,000 vs last year)
3. Quality grades hitting all-time records with 88.6% grading Choice or higher, putting pressure on premium programs
OUTLOOK:
Ranchers should expect continued strong prices through 2026 based on:
- Minimal herd rebuilding indicated by only 1% increase in replacement heifers
- Reduced slaughter capacity constraining throughput
- Strong domestic demand despite record retail prices
- Weather challenges potentially further limiting production
Producers should focus on maximizing production efficiency while these historically high prices persist, but also prepare for eventual market correction when significant herd rebuilding begins.
For more detailed information or specific market data, please contact your local extension office or market analyst.