# The source of high cattle and beef prices

> Oklahoma State extension economist Derrell Peel explains that seven years of drought-driven herd liquidation have produced record cattle and beef prices. The beef cow herd on January 1, 2025 was 27.86 million head, the smallest since 1961, and the 2025 calf crop is the smallest since 1941.

- Date: 2025-10-30 · published 2025-10-30T12:00:00.000Z
- Category: weather · region US · magnitude low
- Page: https://feedsoft.ai/events/22522-the-source-of-high-cattle-and-beef-prices
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

A structurally shrinking cow herd means tighter cattle supplies for years, supporting feeder and live cattle prices and keeping demand for feed and byproducts like DDGS firm for finishing operations.

## Read by commodity

- FCATTLE: bullish ▲
- LCATTLE: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| LCATTLE | 2022-07-27 | [Shrinking cattle herd could equal high calf, beef prices](https://feedsoft.ai/events/40435-shrinking-cattle-herd-could-equal-high-calf-beef-prices.md) | -0.6% | +3.8% |
| LCATTLE | 2021-11-10 | [The Cycle of Drought, Cowherd Liquidation and Higher Feeder Cattle Prices](https://feedsoft.ai/events/44208-the-cycle-of-drought-cowherd-liquidation-and-higher-feeder-cattle-prices.md) | +0.7% | +6.3% |
| LCATTLE | 2023-09-24 | [Summer Grilling Season Ends, But Not The High Price Of Beef](https://feedsoft.ai/events/34244-summer-grilling-season-ends-but-not-the-high-price-of-beef.md) | -0.6% | -0.7% |
| LCATTLE | 2021-08-20 | [Cattle Prices Pt 1 - AG INFORMATION NETWORK OF THE WEST](https://feedsoft.ai/events/10057-cattle-prices-pt-1-ag-information-network-of-the-west.md) | +0.8% | +0.7% |
| LCATTLE | 2019-03-02 | [Fed cattle prices climb](https://feedsoft.ai/events/60221-fed-cattle-prices-climb.md) | +0.8% | -0.5% |
| FCATTLE | 2022-07-27 | [Shrinking cattle herd could equal high calf, beef prices](https://feedsoft.ai/events/40435-shrinking-cattle-herd-could-equal-high-calf-beef-prices.md) | +0.4% | +2.0% |
| FCATTLE | 2021-11-10 | [The Cycle of Drought, Cowherd Liquidation and Higher Feeder Cattle Prices](https://feedsoft.ai/events/44208-the-cycle-of-drought-cowherd-liquidation-and-higher-feeder-cattle-prices.md) | -1.4% | +3.5% |
| FCATTLE | 2023-09-24 | [Summer Grilling Season Ends, But Not The High Price Of Beef](https://feedsoft.ai/events/34244-summer-grilling-season-ends-but-not-the-high-price-of-beef.md) | -0.6% | -4.8% |

## Sources

- beefmagazine.com: https://www.beefmagazine.com/market-news/the-source-of-high-cattle-and-beef-prices

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.