How Cattle Prices Performed in July 2025: A Month of Record Highs and Market Momentum

If you sold cattle in July 2025, you likely remember it as one of the best months in recent history. With fed cattle pushing past $240/cwt and feeder calves commanding over $3.50/lb in many markets, July delivered the kind of prices that make ranchers double-check their sale receipts. Let's break down what happened in the cattle markets last month and what it means for your operation moving forward.

Fed Cattle Hit Summer Peaks

July 2025 saw fed cattle prices reach levels that had old-timers shaking their heads in disbelief. Cash cattle traded consistently in the $235-245/cwt range throughout the month, with some premium cattle in the northern markets fetching even higher prices. To put this in perspective, these prices were running about 25-30% higher than July 2024, adding roughly $400-500 per head compared to a year ago.

The strength came from multiple directions. Packers were aggressively bidding for cattle as beef demand remained surprisingly strong through the summer grilling season. Despite retail beef prices hitting record highs above $8.50/lb, consumers kept buying, particularly for premium cuts. The combination of tight supplies and robust demand created a perfect storm for cattle feeders who marketed cattle in July.

Feeder Cattle and Calves Reached New Territory

If you thought fed cattle prices were impressive, the feeder cattle market was downright spectacular. July saw 500-600 lb steer calves regularly selling for $3.30-3.50/lb, with some high-quality groups pushing even higher. Heavier feeders in the 700-800 lb range commanded $2.70-2.90/cwt, representing premiums of $50-70/cwt over the previous year.

The competition for feeder cattle was fierce. With corn prices remaining relatively affordable and fed cattle futures showing strength into 2026, feedlot operators were willing to pay up for quality cattle. Many auction barns reported standing-room-only crowds and intense bidding wars, particularly for reputation cattle with known health and performance history.

What Drove July's Strong Performance?

Historically Tight Supplies

The fundamental story hadn't changed much from earlier in the year, but July brought it into sharp focus. The US cattle herd sat at its smallest level in 65 years, with the beef cow herd at a 75-year low. Simply put, there weren't enough cattle to go around, and everyone in the supply chain knew it.

Weather Cooperated (Mostly)

Unlike previous summers that saw drought stress across major cattle regions, July 2025 brought timely rains to many areas. Good grass conditions meant producers could be selective about marketing decisions rather than being forced to sell due to feed shortages. This ability to hold cattle if prices weren't right added another layer of support to the market.

Strong Beef Demand Continued

Despite economic uncertainties and high retail prices, beef demand stayed remarkably strong through July. The summer grilling season, combined with export demand and consumers' continued preference for protein, kept beef moving through the system. Choice beef cutouts pushed above $410/cwt, giving packers room to bid aggressively for cattle.

Regional Differences Were Notable

Not every region saw the same price levels in July. Northern cattle continued to command premiums, with Nebraska and Iowa feedlots often paying $3-5/cwt more than southern plains markets. This reflected both quality differences and regional packer competition.

The southeast saw particularly strong prices for lighter calves, as improved pasture conditions from spring rains encouraged stocker operators to compete with feedlots for 400-500 lb calves. Some special sales in Georgia and Alabama reported 450 lb steer calves bringing over $1,600 per head.

Challenges Amid the Prosperity

While July's prices brought smiles to most sellers, the market wasn't without its challenges:

Volatility Increased: Daily price swings of $5-10/cwt became common in the futures market, making it harder to plan marketing strategies. Some producers who waited for even higher prices got caught in brief downdrafts.

Input Costs Remained High: While cattle prices were excellent, the cost of replacement cattle was equally high. Cow-calf producers looking to expand or replace culled cows faced sticker shock, with good young bred cows commanding $3,000-4,000 per head.

Processor Struggles: Some smaller regional packers struggled with the high cattle costs, operating at negative margins for much of July. This raised concerns about packing capacity if some facilities were forced to reduce operations.

What July's Performance Means for Your Operation

For Cow-Calf Producers

July's prices confirmed that retained ownership might be worth considering if you have the resources. The spread between calf prices and fed cattle prices remained wide enough to potentially capture additional value by retaining calves through the feeding phase.

However, the temptation to expand needs to be weighed carefully. With replacement females at historic highs, the math on expansion is challenging despite strong calf prices.

For Stocker Operators

July demonstrated the value of flexibility. Those who could move cattle at different weights based on market conditions found opportunities to capture premiums. The strong demand for heavier feeders (800+ lbs) relative to lighter weights created opportunities for extended grazing programs.

For Feedlots

While July's fed cattle prices were excellent, the high cost of feeder cattle purchases created some of the highest breakevens in history—many over $2.00/lb. Risk management became essential, with many operations using futures and options to protect margins on cattle purchased in July.

Looking Beyond July

As strong as July was, the market fundamentals suggest continued strength ahead. The tight cattle supplies aren't going away anytime soon—the smaller calf crops of 2024 and 2025 guarantee that. USDA projections show fed cattle supplies declining by another 700,000 head through 2025, which should support prices even if demand softens slightly.

However, July also reminded us that these historic prices come with historic volatility. Daily limit moves in the futures market, basis swings of $10-15/cwt, and rapid changes in packer appetite all contributed to a market that required constant attention.

Practical Takeaways from July's Market

1. Documentation Matters: July's premiums for known-source, verified cattle programs were substantial. If you haven't already, consider what verification programs might work for your operation.
2. Flexibility Pays: Operations that could adjust marketing timing by even a few weeks often captured significantly different prices. Having multiple marketing options available proved valuable.
3. Relationships Count: In the competitive July market, established relationships with buyers, order buyers, and feedlots often meant the difference between good and great prices.
4. Risk Management Isn't Optional: With replacement costs so high, protecting price levels through futures, options, or forward contracts became a necessity rather than a luxury.

The Bottom Line

July 2025 will be remembered as a month when cattle markets delivered on their promise of historic prices. Fed cattle consistently above $240/cwt and calves bringing over $3.50/lb validated the patient rebuilding (or lack thereof) following years of drought and liquidation.

For those who sold cattle in July, it was likely one of the most profitable months in their operation's history. For those buying cattle, it required careful pencil work and often some form of price protection to manage the risk.

As we move forward from July's highs, the fundamental story remains intact: tight supplies, strong demand, and a cow herd that shows little sign of rapid expansion. While prices may fluctuate from July's peaks, the overall environment suggests cattle producers are in for an extended period of profitability—a welcome change after years of weather and market challenges.

The key lesson from July? In a market this strong but volatile, stay informed, stay flexible, and don't be afraid to take profits when they're available. After all, markets that can rally this dramatically can also correct quickly. July 2025 proved that sometimes the best marketing decision is simply saying "sold" when prices reach profitable levels.