(NAFB.com) – The CattleFax Outlook Seminar, held as a part of CattleCon 2026 in Nashville, Tennessee, said there are signals showing changes ahead in 2026. The U.S. cattle and beef industry enters 2026 with strong but volatile market conditions, as historically tight cattle supplies, record-setting beef demand, and elevated policy and weather uncertainty continue to support prices, even as markets appear to be near cyclical highs. “Tight inventories and exceptional demand remain the dominant forces shaping the market,” said Mike Murphy, CattleFax Chief Operating Officer. “However, producer demographics, high input costs, and policy uncertainty point to a slow and measured expansion phase.” The Outlook Seminar’s weather forecast is calling for a transition out of La Niña. In the near-term, drought risks remain elevated across the Southern U.S. and Central Plains, with a 70 percent chance of intensification. A neutral spring setup may help distribute moisture more evenly, though lingering La Niña effects could limit precipitation in the West.