Introduction
Ask ten people what feeder cattle are worth and you'll get ten answers. There is no single nationwide price. Value shifts with weight, sex, quality, health status, location, and how the cattle are sold.
That creates a problem on both sides of the sale. Sellers want to capture full value. Buyers need to know whether a purchase price leaves room for profit once feed, health, interest, and freight are paid.
This guide covers how feeder cattle prices are calculated, where to find current U.S. market data, how basis and price slides work, and how to estimate break-even.
Key Takeaways
- Compare prices only after matching cattle type, weight, location, sale method, and report date.
- USDA AMS reports, CME futures, and the CME Feeder Cattle Index serve different purposes.
- Profit depends on purchase price, cost of gain, expected sale value, and market risk.
- Use a documented break-even budget, not a single headline quote.
Understanding Feeder Cattle Pricing
What Feeder Cattle Are
Feeder cattle are young steers and heifers that have not reached finished weight. They graze or eat a growing ration to add weight before entering a feedlot. Stockers and backgrounded cattle sit in this group.
They differ from fed cattle (finished, ready for slaughter), calves (under one year), replacement females, and cull cows removed from breeding herds.
Price Per Cwt vs. Price Per Head
Prices are quoted per hundredweight (cwt., 100 lb) or per head. The conversion:
Value per head = weight (lb) ÷ 100 × price per cwt.
Ohio State Extension's March 2024 illustration: 850 lb at $235/cwt equals $1,997.50 per head. That is an example, not a current quote.
Market References
- Local cash auction: the highest bidder wins, with competitive bidding and prompt payment.
- Video or internet sale: buyers bid by phone or computer from a recorded video of the cattle.
- Direct (private treaty): ranch to buyer, often with little or no bidding competition.
- Forward contract: cattle sold at a set price before final weight, subject to quality minimums.
- Feeder cattle futures: a standardized 50,000-lb CME contract, cash-settled with no physical delivery.
- CME Feeder Cattle Index: settlement benchmark from USDA AMS auction, direct, video, and internet reports for 700-899 lb Medium and Large Frame No. 1 and No. 1-2 steers across 12 states. Weight-weighted over seven calendar days and published with a one-business-day lag.
Confirm index and contract specifications on CME's site before you rely on them. They change.
Basis
Basis is the local cash price minus the futures price. Location, weight, season, and quality all move it.
SDSU reported in June 2026 that South Dakota 550-lb cattle averaged $498/cwt cash against $358/cwt nearby futures in March 2026, a +$140/cwt basis. Lighter cattle carry a wide basis because the futures contract is built on heavier steers.
Price Slides
A price slide adjusts the price when delivered weight differs from the contract's base weight. Heavier cattle usually bring a lower per-cwt price. Slides are not universal. They vary with weight class, sex, season, and market level.
Hypothetical example (not a market quote): base 800 lb at $240/cwt, slide of $8/cwt per 100 lb. Cattle delivered at 850 lb drop $4/cwt, to $236/cwt. Value: 850 ÷ 100 × $236 = $2,006 per head.
Read the slide before you sign. Ohio State's comparison of $8, $10, and $12 slides is illustrative only. Confirm current slide ranges with your auction market or extension office before you negotiate.
Factors That Cause Feeder Cattle Prices to Change
Cattle Characteristics
Oklahoma State notes that price per cwt. generally falls as weight rises, and steers typically bring more than heifers or bulls. A USDA study of 92 sales across seven states (October 2021 to April 2022) put numbers on other traits:
| Trait | Estimated effect |
|---|---|
| Large frame vs. Medium | -$2.67/cwt |
| Excessively fleshy vs. average | -$4.02/cwt |
| Five-head lot vs. one head | +$11.58/cwt |
| Vaccinated vs. unvaccinated | +$1.97/cwt |
| Weaned 30+ days vs. unweaned | +$4.48/cwt |
These are study coefficients from one period, not a current bid schedule. Uniformity, breed type, and health history also matter.
Market and Transaction Factors
- Auction vs. direct sale: Mississippi State Extension says private treaty can avoid commission, hauling to the sale barn, and the shrink that comes with it
- Regional demand and freight: OSU found 500-lb steers averaging $410.01/cwt in Nebraska against $362.66 in Mississippi in early April 2025
- Buyer competition and delivery timing
- Per-cwt. vs. per-head quotes
Broader Market Conditions
Feeder values also respond to wider market forces:
- Beef supply and consumer demand
- Corn prices, forage, and weather
- Inventories and trade
- Packing capacity and interest rates
- Expectations for fed cattle
USDA's February 2026 outlook said Mexican cattle-import restrictions, in place most of 2025, tightened feeder supplies and supported prices. The outlook gave no isolated dollar effect, and border status may have changed since.
Drought is another driver. Texas A&M AgriLife (August 2026) noted that drying native pastures push up supplemental feeding and constrain herd expansion.
How to Find and Interpret Current Feeder Cattle Prices
Checking USDA AMS Reports
- Open the AMS National Feeder and Stocker Cattle Dashboard, launched April 14, 2026. It filters by date, sale type, region, class, and weight.
- For local detail, use the AMS feeder summary page or the My Market News report catalog and pick your state's auction report.
- Check grade and description in the report rows. Confirm on the dashboard whether a universal grade filter is available; otherwise rely on the row-level details.
- Record the report date, head count, weight range, price range or weighted average, and notes on the cattle.
A real example: a Russell, Iowa report from September 14, 2026 showed 360 head of Medium and Large No. 1 steers, 553-598 lb, averaging 573 lb at $423.03/cwt (range $396.00-$439.75). The descriptions included unweaned and fleshy. That is historical, not live.
Using CME Data Correctly
CME futures quotes are delayed at least 10 minutes, and the index lags one business day. Both are references. Neither is a guaranteed local price, because basis, location, weight, quality, and timing separate them from a specific lot's cash value.
Comparing Two Reports
Match weight, sex, class, quality, health program, lot size, delivery timing, and market region first. A 575-lb unweaned steer lot in Iowa says little about 750-lb weaned steers in Texas.
From Report Price to Net Value
Multiply average weight by the per-cwt price, then adjust:
- Subtract commission, hauling, and special marketing fees.
- Account for shrink. Mississippi State reports actual feeder shrink commonly runs 2%-8%, while many private contracts use a 2%-4% pencil shrink.
- Add any premiums, such as for weaning or vaccination.
Kentucky's March 2026 stocker model assumed $30/head for sale and commission, and $18 to $21/head for hauling. Those are assumptions, not national norms.
Current Price Checklist
- Confirm the data is recent and from a credible source.
- Compare against a similar class of cattle, not a market average.
- Save the source and report date.
- Use multiple references for large purchases, sales, or risk decisions.
Are Feeder Cattle Profitable?
Start With the Formula
Feeder cattle can be profitable, but only when value of gain beats cost of gain and your break-even clears the market. You can't judge that from the selling price alone.
Profit = expected sale revenue - purchase cost - feed, forage, health, labor, interest, freight, and all other costs
Budget items include purchase price, feed, pasture, yardage, veterinary care, medicine, labor, interest, transportation, insurance, death loss, shrink, commission, equipment, and facilities.
Watch the scope. Kentucky's 2026 stocker model excludes labor and fixed investment. Missouri's backgrounding budget reports returns over all costs. Don't compare their bottom lines directly.
Value of Gain and Cost of Gain
- Value of gain ($/lb): (expected future value per head - current value per head) ÷ pounds gained.
- Cost of gain ($/lb): total feeding-program cost ÷ pounds gained.
If value of gain exceeds cost of gain, adding weight pays. Kentucky's growing-period variable costs were $285/head (500 to 775 lb) and $311/head (600 to 875 lb). Missouri's 2027 projections, built on October 2026 forecasts, showed +$45/head for drylot against -$159.49/head on pasture. Those are projections, not realized results.
Break-Even Framework
- Estimate purchase cost per head.
- Add projected costs through the sale date.
- Estimate sale weight.
- Divide total cost by sale weight in cwt. to get the break-even price per cwt.
- Compare that figure against a range of sale prices, not one forecast.
Illustrative only: $2,000 purchase + $350 other costs = $2,350. At 850 lb (8.5 cwt.), break-even is $276.47/cwt.
What Turns a Profit Into a Loss
- Feed. Kentucky found a $25/ton change in a feed blend moves winter-backgrounding profit by $15/head.
- Slower gain. Texas A&M's modeled break-even rose from $294.49/cwt at 2.02 lb/day to $334.61/cwt at 1.35 lb/day.
- Death loss and illness. Kentucky assumes 2% death loss in its model.
- Interest, freight, and basis. A 7% interest rate, freight costs, and shifting basis can erase thin margins.
- Slide and market risk. Slide adjustments and a weaker fed cattle market cut the price you actually receive.
Decision Framework
- Update the budget with current quotes.
- Test optimistic and conservative scenarios.
- Identify the maximum purchase price or minimum sale price that works.
- Consider professional advice or risk tools such as CME futures and options.
RMA's LRP-Feeder Cattle insurance pays when ending value falls below coverage, using CME index data rather than your own sale receipt.
Frequently Asked Questions
What are the current prices of feeder cattle?
Prices vary by location, weight, sex, quality, and sale method. Check the latest USDA AMS dashboard and local reports, plus CME references, and record the report date.
Are feeder cattle profitable?
It depends on purchase price, cost of gain, sale value, health, financing, and market risk. Build a full break-even budget before buying.
How is feeder cattle price calculated?
Per-head value equals average weight ÷ 100 × price per cwt. Quality, location, health, and contract terms then adjust the final price.
What is a price slide on feeder cattle?
It's the price adjustment when delivered weight differs from the contract's base weight. Review the agreed slide before signing.
What is the difference between feeder cattle cash prices and futures prices?
Cash prices reflect actual physical sales. Futures reflect standardized contracts and expectations. Basis is one reason they differ.
Where can I find reliable feeder cattle market reports?
Use USDA AMS livestock reports, CME Group data, land-grant extension resources, and reputable market services. Check publication dates and methodology.
