Taking a Leap of Faith: Can Beef Demand Keep up with Supply?

Holiday buying is starting to slow down at retailers, but cattle prices are still hanging tough.

Matt Bennett, founder of Bennett Consulting, says the cattle market has been inverted for “quite some time” and profit margins have been holding steady.

“The thing that’s tough for me is buying feeders right now and then hedge on out on the fats,” he said on AgDay. “It’s one of those things where we’ve got to take a leap of faith.”

Cattle producers have been surprised with prices as 2017 comes to an end. Bennett is advising producers to not take this opportunity for granted.

“These cattle on feed numbers, we could end up taking this market down,” he said. “I want to be locking in profit margins whenever they exist.”

Bennett comments on holiday demand and what needs to happen to keep the market moving forward on AgDay above.

 

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