Cattle Market History: Feeder Prices Soar Above $300, Leaving Experts Wondering What’s Next
The cattle market is experiencing unprecedented highs, with feeder cattle futures hitting a historic milestone. August and September feeder cattle futures closed above $300 for the first time ever on May 8th, 2025, triggering both excitement and caution among experts. This surge invites comparison to the 2014 rally, but the big question now is: Can these high prices be sustained?
David Ericson of Ag Optimus noted the significance of this moment, stating, “May 8th, 2025 is the day that we’re gonna all remember.” According to Ericson, the primary driver behind this price surge is extremely tight supply which has pushed cash bids up to $228.
Scott Varilek, Kooima Kooima Varilek, also confirmed the record-breaking cash trade, surpassing even recent highs. He highlighted that in the North, cash traded mostly at $228 live this week, up $5 from the week before. Some producers even struck deals for delayed delivery into June, indicating strong need by packers.
Despite the bullish sentiment, Ericson urged caution, reminding market participants that “no one’s really gonna see the end coming.” He advised those involved to be watchful and prepared.
Corn and Soybean Markets React
While cattle prices are reaching new heights, the corn market is showing signs of short covering after hitting new lows. Soybeans are also showing early strength and are optimistically looking at U.S. officials planning to lower tariffs from 145% to 60%.
According to Varilek, live cattle and feeder cattle futures continue to climb as they remain at a discount to cash, and August and September feeders have surpassed the $300 mark. Varilek noted that the bull spreads are working well until the king stop trading.
Challenges Ahead
While current prices are favorable, analysts warn against complacency. Ross Baldwin, hedging strategist at AgMarket.Net, expects the rally to continue, but maintaining a level of caution is essential for navigating the marketplace.
How long can these record-high prices last? Will tightening supplies continue to fuel the market, or will other factors come into play? Share your thoughts and predictions in the comments below!