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Strong Prices & Strong Demand Heading into Fall

Prices have remained strong throughout 2025 so far, and it is looking to stay that way at the time of writing article. Prices for 525-pound steer calves across Florida averaged $3.70/lb. in August, up roughly 50%  from August 2024. Heading into the fall-run of calves, we might expect to see a seasonal dip in prices. But with tight supplies getting tighter, combined with strong demand, the dip may not be as large as in past years.

beef demand chartIn the latest cattle on feed report, placements were down 6% from last year. But, it is worth noting that the Mexican border is still closed, affecting the number of placements and prices. Last July, over 100,000 head of Mexican feeder cattle were place in feedlots, compared to the 4,600 head that were placed this July. If the border had been open, we may have seen a smaller year-to-year difference in placements. Total cattle on feed numbers are still expected to be lower throughout the year, but record prices are incentivizing the sale of calves, which could be influencing the timing of the fall-run of calves this year. Specifically in Florida, feeder cattle receipts in July totaled at 15,667, down almost 9% year-over-year. But in August, receipts were unchanged, totaling at 21,130.

Prices for cull cows have also remained strong. In August, prices for average dressed boning cattle in Florida averaged $1.60/lb. Strong demand for beef products, specifically ground beef, is driving higher prices for cull cows. The average price for all fresh retail beef products rose to $8.90/lb in July. It will be interesting to see this fall, when culling decisions are made, whether cows will be given another year to raise a high-value calf or if producers will cull harder and take advantage of high cull cow prices.

yield grades chartAnother factor influencing high cull cow prices is that with longer feeding days, we are seeing more carcasses with yield grades 4 and 5. Fat trimmings (50s) form steers and heifers are combined with lean trimmings (90s) from cull cows to create ground beef products. With more fat trim and less lean trim being produced and continued strong demand, prices for cull cows are expected to remain more than favorable.

Questions, contact Hannah at h.baker@ufl.edu 

See this update and other helpful resources online at https://rcrec-ona.ifas.ufl.edu/about/directory/staff/hannah-baker/

Hannah Baker