Tyson is closing two beef plants and selling a third, July feedlot placements hit a record low, Mexican cattle crossed at Douglas for the first time since the screwworm closure, and the DOJ widened its beef-price probe to eight retailers.
Overview
August was about capacity. Tyson announced it will close two plants and sell a third, JBS ended beef harvest at Souderton, and July feedlot placements fell to the lowest July on record. At the same time, the border began to reopen: Mexican cattle crossed at Douglas, Arizona on August 24 for the first time since the screwworm closure. Fed cattle came well off their spring highs, but boxed beef did not follow — and the Choice/Select spread widened past $25. On September 1, the DOJ widened its beef-price investigation to eight major retailers. Here is what moved between August 5 and September 3.
August by the numbers
- Jobs hit by Tyson closures
- 3,000+
- Joslin, IL · Eagle Mountain, UT
- July feedlot placements
- 1.42M
- lowest July since 1996
- Choice/Select spread
- $25.20
- per cwt · September 2
- Live cattle futures
- −17.1%
- May 1 high to Aug 21 low
Source: Capital Press; DTN; USDA AMS via IndexBox, Sep 2; Barchart
Packers Cut Capacity
- On August 13, Tyson announced the permanent closure of its Joslin, Illinois beef plant and its Eagle Mountain, Utah case-ready plant, and said it will seek a buyer for its Pasco, Washington plant. More than 3,000 jobs are affected, over 2,500 at Joslin. Tyson cited “one of the most historic cattle shortages the country has ever experienced” and will center its beef business on Dakota City, NE; Holcomb, KS; and Amarillo, TX. (Capital Press; Oklahoma Farm Report)
- On August 10, JBS USA reversed its June decision to close Souderton, Pennsylvania: the plant will become a value-added/case-ready operation with more than $30 million in investment, keeping about 400 of roughly 1,500 jobs. Beef harvest there ended August 14. (AgBull)
DOJ Probe Widens to Retailers
On September 1, the DOJ Antitrust Division sent letters to eight retailers — Kroger, Walmart, Aldi, Costco, Publix, Albertsons, Ahold Delhaize USA and Amazon — requesting beef pricing strategies, margins, costs and wholesale arrangements with packers going back to 2020. The investigation of JBS, Cargill, Tyson and National Beef continues. (Forbes; The Cattle Site)
The Border Reopens — Slowly
On August 24, USDA reopened the Douglas, Arizona port to cattle from Mexico under a jointly agreed protocol that includes RFID ear tags with scanners and dog-assisted inspection of each animal. APHIS will evaluate Douglas before considering the Santa Teresa and Columbus, New Mexico ports. (KJZZ; Washington Times)
Cattle: Pipeline at Record Lows, Prices Off Their Highs
- Cattle on Feed (August 21): 11.1 million head on August 1 (+2%), but July placements of 1.42 million (−11%) and marketings of 1.62 million (−7%) were both the lowest for any July since the series began in 1996. (DTN; Drovers)
- Futures: live cattle fell 17.1% from the May 1 high to an August 21 low of $212.675/cwt; feeders fell 16.9% to $315.40. (Barchart)
- Cash: fed cattle traded mainly $217–220 live in the week of August 28. On September 3, October live cattle closed at $214.30. (Producers Livestock; Brownfield)
USDA Cuts Beef Output Again
The August WASDE cut 2026 beef production by 321 million lb to 24.967 billion lb. It lowered the slaughter-steer price forecast by $13 to $242/cwt for the third quarter and by $10 to $245 for the fourth. (USDA ERS)
Boxed Beef: Still Expensive, Wide Spread
Fed cattle fell, but boxed beef held. On September 2, Choice was $378.78/cwt and Select $353.58 — a $25.20 spread. Rib and loin primals continue to carry the cutout. (IndexBox / USDA AMS)
Rib and loin carry the cutout
USDA Choice primal values, September 2, 2026, $ per cwt
View data
| Value | |
|---|---|
| Rib | $651.92 |
| Loin | $472.95 |
| Brisket | $325.47 |
| Chuck | $324.72 |
| Round | $304.95 |
| Short plate | $251.22 |
Source: USDA AMS via IndexBox, Sep 2
Retail
July price data showed 100% ground beef at $6.885/lb, up about 10% from a year earlier, and all beef steaks at $13.06/lb. (BLS; PriceOfMeat)
Retail ground beef keeps climbing
U.S. average retail price, $ per lb, monthly
- Ground beef (100% beef)
- Bacon, sliced
No October 2025 data: BLS did not publish average prices for that month (federal shutdown).
View data
| Ground beef (100% beef) | Bacon, sliced | |
|---|---|---|
| Jan ’25 | $5.55 | $7.04 |
| Feb | $5.63 | $6.80 |
| Mar | $5.79 | $6.98 |
| Apr | $5.80 | $7.01 |
| May | $5.98 | $6.99 |
| Jun | $6.12 | $7.10 |
| Jul | $6.25 | $7.12 |
| Aug | $6.32 | $7.21 |
| Sep | $6.32 | $7.29 |
| Oct | — | — |
| Nov | $6.54 | $6.93 |
| Dec | $6.69 | $6.76 |
| Jan ’26 | $6.75 | $6.98 |
| Feb | $6.74 | $6.90 |
| Mar | $6.70 | $6.80 |
| Apr | $6.90 | $6.83 |
| May | $6.75 | $6.71 |
| Jun | $6.83 | $6.56 |
| Jul | $6.89 | $6.58 |
Source: BLS APU0000703112; BLS APU0000704111
Pork, Poultry and Lamb
- Pork: the cutout averaged $101.26/cwt in July, almost 12% below July 2025, and slipped below $100 in August ($99.26 on August 7). Lean hog futures fell below 80¢/lb on August 21. (USDA ERS; The Pig Site; Barchart)
- Broilers: the national composite whole-bird price averaged 118.4¢/lb in July — the lowest month of 2026. USDA forecasts 2026 broiler production up 3.4%. (USDA ERS)
- Lamb: USDA held its 2026 lamb price forecast at $268/cwt and $273 for 2027 — about $75 and $80 above 2025. (USDA ERS)
Key Takeaways for Industry Professionals
- Capacity is shrinking faster than cattle numbers. The Tyson and JBS changes remove slaughter and case-ready capacity in the Midwest and Northeast. Lock in program volume early.
- Cheaper cattle haven’t meant cheaper beef. Live futures fell 17% from May; the Choice cutout is still near $379.
- Use the spread. At $25.20, Select and lower grades are the value buy for features.
- The pipeline is thinning. Record-low July placements and another USDA production cut point to tight fed supply into Q4.
- Mexican feeders are a trickle, not a flood. One port reopened; watch New Mexico.
- Pork and chicken are the value proteins. Pork cutout below $100 and broilers at their 2026 low are good candidates for features and inventory buys.
This report was compiled from USDA market data and reports, BLS price data and industry publications for the period August 5 – September 3, 2026. Willowfield Enterprises provides this information for educational purposes. For personalized analysis, contact our team.
Sources
- Capital Press: Tyson to Sell Washington Plant, Close Illinois and Utah Facilities
- Oklahoma Farm Report: Tyson Shuts Down Beef Plants
- AgBull: JBS Souderton Becomes Value-Added Hub
- Forbes: DOJ Widens Meat Pricing Probe to Retailers
- The Cattle Site: DOJ Expands Beef Pricing Probe
- KJZZ: U.S.–Mexico Border Reopens to Cattle
- DTN: August 1 Cattle on Feed
- Barchart: Where Are Cattle Prices Heading?
- Brownfield: Closing Futures, September 3
- USDA ERS: Livestock, Dairy, and Poultry Outlook, August 2026
- IndexBox: Boxed Beef Cutout, September 2 (USDA AMS)
- BLS: Average Price, Ground Beef (APU0000703112)
- The Pig Site: CME Market Report, August 7
