Record Cattle Prices and Unprecedented Demand

August 19, 2025

The cattle market continues its remarkable run, and few people have a closer look at it than auctioneer Ty Thompson of Northern Livestock Video Auction. Following their recent Early Fall Preview sale, Thompson shared his perspective from the auction block.

Record Prices on Lightweight Calves

One of the most eye-catching sales came from the Two Dot Ranch near Cody, Wyoming, where 405-pound steer calves brought an astounding $607.50 per hundredweight — over $2,400 per head. “There were five people bidding at $5.75–$5.80 on those cattle,” Thompson said. “It just shows the demand for like-kind, reputation calves.”

WATCH: Ty Thompson talks with Lane Nordlund on latest LaneCast Ag Podcast. 

Unprecedented Beef Demand

Thompson explained that today’s prices are being fueled by more than just short cattle numbers. “What we have going now is unprecedented demand,” he said. “When consumers will pay $8–$10 for hamburger and leave a $2 pork chop on the shelf, that’s telling you something.”

Adding to the bullish outlook: expectations of a record U.S. corn crop, which helps feedlots pencil out strong margins despite historically high cattle costs.

Cow-Calf Sector in the Driver’s Seat

The conversation turned to herd size and the potential for expansion. “If you ask what the perfect size is, I’d say right now,” Thompson said with grin. “You can sell a 400-pound calf for $6.00 to $7.50, and six-weights are selling all day in the mid-$400s. But I don’t see a rebuild back to the cow herd we once had. Aging ranchers and half-stocked land will limit that.”

Still, he emphasized that cow-calf producers are in the driver’s seat. “This calf side is the bread and butter right now.”

Heifer and Yearling Trends

Replacement-quality heifers also saw robust demand, with prices ranging from $2,400 to $2,700 depending on weight and quality. “Most of those went back into breeding programs,” Thompson noted, as ranchers stepped up to compete with feeders.

Yearlings were equally strong, with 825-pound steers bringing $3.85 and 900-pound heifers trading into the mid-$3.30s.

Bred Cattle

While bred cattle didn’t see a full market test in this sale, Thompson anticipates stronger values later in the year. “Come December, I think you’ll see bred heifers push toward $5,000,” he said.

“We’re in unprecedented times,” Thompson concluded. “Even if we see a $30 or $40 break, we’re still in good shape. I’m happy for our rancher customers and optimistic about where we’re headed.”

Source: Western Ag Network