Cattle Futures Decline Amid Industry Skepticism and Tyson Foods' Plant Closures

Cattle futures declined sharply in recent weeks, ending a three-week rally for September feeder cattle. The contract fell $10.68 to $334.55 per hundredweight (cwt). October live cattle also saw significant losses, settling down $6.40 at $218.88 per cwt.

The decline was exacerbated by industry skepticism and consumer pushback against higher beef prices. Tyson Foods' announcement of plant closures in Illinois and Utah, as well as its plans to sell a facility in Washington state, contributed to the downturn. The company's actions effectively reduced the number of active buyers in the marketplace.

The August World Agricultural Supply and Demand Estimates (WASDE) report from the USDA also played a significant role in the price decline. The department reduced its 2026 fed steer forecasts by $5.75 per cwt, bringing the estimate down to $245.35 from a previous projection of $251.10.

Corn prices have added pressure to the cattle market, with the USDA reducing 2025/2026 corn ending stocks to 1.945 billion bushels. This lower-than-expected figure caused December corn futures to spike over 20 cents per bushel, squeezing feedlot margins as feed costs rose.