Cattle prices have surged to record highs to ring in the new year. Southern live cattle traded at $196 to $197, up $4 to $5 from the previous week. Northern dressed cattle reached $312 to $315. That is $5 to $8 higher than the prior week.

Due to low holiday purchases, the packers are short on inventory and must now support the market despite rising costs. Over the weeks ending December 23 and December 30, 2024, packers bought only 49,864 and 44,027 head of cattle, respectively. Last week, this increased to 85,514 head, with 77% committed to near-term delivery.

Boxed beef prices also climbed as retailers restocked after the holidays. Choice cuts averaged $324.58. This was up $5.00. Select cuts averaged $295.05. This was an increase of $6.17.

Packers are unlikely to slow processing speeds as it would reduce marketable beef. While no asking prices have been set, the market is expected to likely trend higher.

Read more about cattle market trends here.