Livestock Marketing Information Center
In The Cattle Markets
Updated: 5/11/2026
Drought Lingers in South and West
Five months into 2026, and unfortunately, drought is not a new topic. The current U.S. Drought Monitor shows abnormally dry or drought conditions covering much of the southern and western portions of the U.S. Around 60 percent of cattle inventory are in drought conditions.
Livestock Monitor
Updated: 5/22/2026
CATTLE PRICES AND CATTLE ON FEED
The weekly 5-area fed steer price continues to track seasonally higher ahead of the Memorial Day holiday weekend. Last week, fed steer prices were tracking in the low-to-mid $260 per cwt area, well above year-ago levels. Since the start of the year, the fed steer price has risen from $231.86 per cwt to last week’s price of $262.85 per cwt, an increase of $30 per cwt (+13%) in just under five months. Over the same period, weekly fed steer prices have been tracking above year-ago levels by about $35 per cwt (+17%) on average. Last year, the fed steer price reached a peak of $244.25 per cwt in late August. From the Memorial Day holiday to the peak in late August, the fed steer price increased about $17 per cwt (+8%). If the fed steer price follows a similar seasonal pattern to last year, weekly prices could continue to move higher, assuming demand holds strong.
FOOD SECTOR RETAIL SALES GROWTH LIMPS INTO SPRING QUARTER
Retail sales across the entire economy have been resilient through the first four months of the year, but food sector sales beginning in March have been advancing at a slower pace than was seen since the pandemic. Economy-wide, retail sales were up close to +5% from a year ago in March and April. This followed a slow start in January with only a +3% increase. Grocery store sales started out the year at a +2% growth pace and then slipped to a decline from the prior February but have moved back into positive ground, barely, for March and April. This is the slowest four-month growth pace for grocery stores since late 2023 and into early 2024.
PROFITABILITY REMAINS FOR THE HOG SECTOR
Over the last two years, Iowa State University’s estimated monthly returns for a farrow-to-finish hog operation have posted profitable levels. During the two-year period, estimated returns have ranged from $2.67 to $52.58 per head with an average of $20.15 per head. During the four months of reported data for this year, monthly returns have averaged $16.19 per head with a range of $7.18 per head in January to $21.54 per head in March. Iowa State University reported April’s estimated returns at $20.43 per head, an increase of $6.95 per head (+52%) from last year.
