Hot Cattle Market
How much higher can the cattle market go and when is going to cool off?
That’s the question Mike Adams asked Beef Today’s Editor, Greg Henderson on "AgriTalk’s." According to Greg, "this cattle market is just crazy." Currently, the cattle market and beef industry are seeing record numbers. However, the consumer demand isn’t tapering off just yet but the economists still anticipates retail demand to go down due to the higher prices.
Greg also mentioned that we are still seeing lower supplies. He said tomorrow’s Cattle on Feed Report will show "for the 17th consecutive month cattle inventories are lower." Apparently, folks in Chicago aren’t convinced, though, because the futures prices are running in steep discounts to the cash prices.
Fewer cattle also mean fewer dollars for the Beef Checkoff, which is critical now because the Checkoff is increasingly squeezed. Since the Checkoff not only promotes beef product it also but also allows the beef industry to speak with a unified voice through issues management.
Bottom line: The beef market and industry are seeing hot markets and are in unprecedented territory but how long can we sustain this? Greg says, "We’ll see closer to the grilling season."
Listen to the full report and check out Beef Today’s Cattle Markets Center for the latest markets information.
