From TexAgs Sponsor, Capital Farm Credit:




Beef Market Outlook

We're heading into 2026 in a tight cattle environment. Supplies remain historically constrained, prices are strong, and drought is still a factor in parts of Texas. The question isn't whether the market is good, it's what to do with it.
Texas retained more heifers this year (about an 8% increase in replacements), but overall cow numbers are still slightly lower than a year ago. National inventory slipped again too to just over 1%.

At the same time:

• Bred heifers are bringing $4,000 - $5,000
• 500-600 lb steers have recently averaged around $450/cwt in Texas
• Feed costs have eased some, but moisture conditions remain mixed across the state

It's an interesting spot in the cycle.

Strong margins reward selling. Tight supplies suggest prices could stay supported into 2026, but weather risks are keeping some producers cautious.

At Capital Farm Credit, we're seeing different approaches across Texas. Some are capitalizing on today's prices while others are slowly positioning for growth.

What's the smarter move in your view? Sell into strength? Start rebuilding? Wait on spring rains?
We're curious what y'all are seeing in your part of the state drop your thoughts in the comments below.