Cattle prices trade at all-time highs

Aside from a small correction toward the end of the 2023 calendar year, feeder cattle futures in the U.S. have been steadily climbing since the COVID-19 pandemic in 2020. In recent weeks, prices have traded to their highest levels ever, both in the cash market and on the board of trade.

The U.S. Department of Agriculture’s (USDA) weekly average steer price report — which averages trade prices from multiple locations across the country to arrive at a common price — increased to $198.93 per hundredweight in the most recent update, the highest level ever. Similarly, spot-month feeder cattle futures at the Chicago Board of Trade (CBOT) have trended higher since the beginning of fall, with prices since September up nearly $40 per hundredweight.

So...