Record-high cattle prices continue surging as feedlot inventory hits the lowest December levels since 2017. This week's market update reveals lightweight calves trading at $375.08/cwt, with futures suggesting even stronger prices ahead. The sustained rally stems from thirteen consecutive months of declining inventory and November placements at historic lows, setting up what could be an exceptionally strong start to 2026.

In this special Christmas Eve edition of Cattle Market Guys, hosts Brock and Jim analyze the dramatic supply-driven market conditions shaping the cattle industry. The episode breaks down current cash trades, with Southern regions settling at $229 and Northern dressed trades reaching $358, demonstrating remarkable strength despite seasonal pressures.

The hosts explore how historically low feedlot numbers - down 2.1% year over year at 11.727 million head - are creating opportunities for producers heading into the new year. They compare current market conditions to previous contraction cycles, including the significant 1996 drought period, offering valuable historical context for today's producers.

The discussion concludes with critical warnings about regulatory uncertainties, including potential changes to mandatory market reporting and country-of-origin labeling (COOL). Brock and Jim emphasize the importance of staying informed and maintaining a business-first approach during these volatile times, while sharing practical strategies for navigating the current market landscape.

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Hear the full episode → https://www.herdadvisor.com/cattle-market-guys-podcast

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