Rabo AgriFinance says the live cattle and feeder cattle markets are out of balance right now; a sign that lower feeder cattle prices could be on the horizon.
As numbers continue to roll out, and the impacts of ASF are fully realized, it could be a bullish demand story for all proteins as the industry could face a protein shortage this year.
Much of the trade focus has been on China. However, the United States agricultural industry could be at a significant tariff disadvantage starting April 1 and it has nothing to do with China.
At some point this year, Congress is expected to vote on the USMCA agreement between the United States, Mexico and Canada. The agreement still needs an up or down vote from both chambers of Congress.
Last year U.S. beef exports shattered the previous value record and achieved a new high for volume, according to year-end 2018 statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef producing countries like Australia, Canada, New Zealand and Mexico are gaining greater access into Japan thanks to lowered tariffs, giving those exporters a significant advantage over U.S. beef producers.
