– Josh Maples, Assistant Professor & Extension Economist, Department of Agricultural Economics, Mississippi State University
Five-weight steer average prices in Mississippi topped $321 per cwt last week. Reported averages in Kentucky were over $332 per cwt, and Oklahoma City topped $354. These are all record-high prices and sharply above year-ago levels. Cull cow and bull prices are also at record highs.
The 2025 CME feeder cattle futures contracts have shown significant strength recently while pushing beyond record territory. The May 2025 CME Feeder Cattle contract closed trading on Friday, March 14th above $280 per cwt. The September 2025 contract closed above $283 on Friday. All of the 2025 contracts closed at new records for their respective contract month. For historical reference, the highest level any feeder cattle contract reached during 2014-2015 was $241.
The strength of these futures contracts is a testament to the optimism market participants currently have for cattle prices in 2025. The latest USDA World Agricultural Supply and Demand Estimates (WASDE) also show an expected improvement in cattle prices during 2025. The latest WASDE estimate is for live cattle prices to average $200 per cwt during 2025, up from $187 in 2024.
Many producers in the Southeast have calves on the ground now with plans to sell later in the year. It is always a good time to consider price risk management, but especially in an optimistic market environment like this one. Tools such as futures/options, Livestock Risk Protection (LRP), forward contracting, etc., are all worth checking out to see if they are a fit for your operation and risk preferences. These are tools that can help producers capitalize on strong expectations and be protected in case markets drop between now and when you intend to sell your calves.