Cattle Prices Hit New Highs to Start 2025

By Josh Maples

2024 was such a strong year for cattle prices that it left many folks wondering whether 2025 could start with the strength often seen during the first few months of the year. Calf prices typically rise seasonally during the first few months of the year and, so far, 2025 is no exception. 500-600 pound #1-2 steers in Oklahoma City are at $334 per CWT this week, up roughly $20 since the first week of January. For fed cattle, the 5-market average hit $203.67 last week which was the third consecutive record-high weekly average.

Calf markets typically rally early in the year. It is a normal part of the seasonal patterns of this market. Over the past 8 years, the average price of 500-600 pound #1-2 steers in Oklahoma City was higher at the end of February than at the beginning of January every year. Live cattle prices typically exhibit strength the first few months of the year, too.

Strong demand for cattle relative to tight supplies is contributing to the higher prices.  The current restriction on calves from Mexico and smaller feedlot placements earlier in the year are leading to tighter supplies. Beef prices are strong, too, which supports cattle prices. The Choice Boxed Beef Cutout hit $333 per CWT last week which is the highest value since June 2023.

The next Cattle on Feed report came out on Friday, January 24. This one is particularly relevant because it will show the quarterly number of heifers in feedlots. This is a metric worth watching in 2025 as everyone looks for signals of expansion. Looking ahead to January 31, we will get the annual Cattle inventory report which is the most detailed breakdown of cattle supplies that is released.