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Cattle Prices Hit Records as Shrinking U.S. Herd Drives Beef Costs Higher

Tight supply is colliding with steady demand, signaling more price pressure ahead for shoppers and restaurants.

Overview

  • Live cattle futures reached an all-time high of $2.51 per pound at the CME, capping a roughly 25% jump over the past year, according to FactSet data reported by CNBC.
  • Retail costs stayed near peaks, with all uncooked ground beef averaging $6.86 per pound in March, three cents below February’s record, federal data show.
  • Supplies are tight as the national cattle herd sits at a 75-year low after drought and higher feed costs, and a U.S. halt on Mexican cattle imports has removed about 1 million animals from the pipeline.
  • Barclays, citing USDA figures, estimates March cattle slaughter fell to about 2.2 million head and beef production to roughly 1.9 million pounds, underscoring the year-over-year decline in output.
  • Demand has held up even as prices rise, and the USDA projects beef costs will climb more than 10% in 2026, with herd rebuilding slowed by a 15 to 24 month timeline from birth to slaughter.