The livestock markets are sitting in a good spot, economists believe, and as grilling season approaches, prices should see a “little pop.”

Chad Hart, agriculture economist at Iowa State University Extension, said that the cattle market appears to be doing just fine right now, but “everyone’s worried about the other shoe dropping.”

“The war exacerbated the queasiness in the market, but they’re still showing very strong prices and we’re still seeing a very strong consumer demand,” Hart said March 13. “It’s great if you’re selling animals, but it stinks if you have to buy them.”

That outlook holds true for pork, as well, Hart said.

“When you look at the cattle side of the equation, things are still in pretty good shape and it’s been this way the past couple of years — not much has really changed,” he said. “They’re in the same spot and hoping consumer demand holds up despite all the geopolitical price uncertainty. The pork market isn’t doing quite what beef is, but it’s not in a bad spot either.”

Pork prices are hovering around where production costs are at, but as the grilling season approaches, Hart predicts a “little pop in price.”

Chris Pudenz, economics and research manager for the Iowa Farm Bureau, said Iowans have been in a similar market situation the past couple of years where there’s a “tale of two economies.”

“You have a livestock ag economy that’s doing pretty well and then the row crops that are struggling pretty badly. The hog markets were quietly healing in 2025 and we’re looking to continue that healing into 2026,” Pudenz said. “There’s plenty of healing to be done following a very disastrous 2023, with continued bleeding into 2024. But 2025 ended up being better than a lot of folks expected from a margins perspective, and in 2026, so far indications are that it should be pretty similar from a producer profit perspective.”

Pudenz agreed that 2025 was a “very strong year” for cattle producers — one for the record books from a profitability perspective.

“For cattle feedlots, there’s some questions as to how strong returns will be for feeder steers and calves, which have gotten very expensive. That’s good for cow-calf producers in the state and region, but it’s starting to squeeze margins for cattle feedlots in the state. I’m already hearing stories of smaller or less efficient feedlots deciding to leave pens empty because they don’t want to take the risk of placing their expensive feeder cattle and betting on a bull run,” Pudenz said.

“Last year, that paid off, but this year, sitting where we are, a lot of folks are unwilling to make that same bet,” he continued. “I talked to one cattle producer in western Iowa whose pens were empty and another with pens full, so it’s all up to the individual producer’s operation, financial situation and their preference for risk.”