August has certainly been an eventful month for the cattle industry. A phased re-opening of the border has begun starting in Douglas, Arizona with plans to open two ports in New Mexico within 60 days. Additional processing plants are closing as Tyson Foods announced its closure of two processing plants and a case-ready facility. An announcement was made that more “ground beef” imports (actually lean trimmings to combine with fat trimmings to make ground beef) will be allowed into the U.S., tariff-free, within a 90-day period. We don’t know what countries this beef will come from. We also don’t know if these 300,000 metric tons (roughly 660 million pounds) will be in addition to already planned imports or will just be planned imports without the tariff. Cattle on Feed reports continue to confirm that supplies are tightening with fewer placements . Prices are certainly experiencing significant volatility this year, now amidst the industry heading into the fall-run and seasonal price decline when more calves are entering the market.
In the cash market, prices for 450-500-pound steer calves in Florida have steadily declined since a spring high of $527/cwt in April to a low of $413/cwt in late August. As of August 22nd, prices are lower by $62/cwt since the week of July 11, 2026, with prices falling by $40/cwt one week and rebounding by $43/cwt within two weeks. However, average monthly prices are still higher relative to 2024 and 2025. While prices appear to be moving downward towards 2025 levels, fundamentals tell us that future cattle supplies are still tightening, especially as more heifers are retained, which would support continued high prices for cattle.
Data Source: USDA-AMS & LMIC
To that point, however, recent market activity has done little to increase confidence in rebuilding the herd. Downward pressure on prices, whether driven by market reactions or underlying industry fundamentals, can further delay herd expansion decisions and can also influence when producers choose to market cattle. Managing through a volatile market requires producers to remain committed to marketing and risk management plans, within reason, that are established before market conditions change. Knowing the price needed to meet an operation’s financial goals and establishing that target before marketing can help producers stay disciplined when market volatility creates pressure to change course.
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/
Written August 2026
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