2026 margin pressure
- ZISK
- Mar 10
- 1 min read
High calf prices are expected to tighten margins for stocker and feedlot operations in 2026. The changing price spread between cattle in different weight classes gives an indication that this is already happening. The spread between calves, feeders, and fed cattle reflects the relative value of cattle across the supply chain at different production stages. Historically, these spreads fluctuate within a stable range, usually independent of the price level. While the three markets are closely linked, each responds to its own set of supply and demand fundamentals, causing spreads to vary seasonally throughout the year and cyclically to overall cattle supplies.
University of Arkansas
March 5, 2026
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