The futures markets for live and feeder cattle have not been overly volatile and the forward-looking volatility remains low.
As one tries to look into the crystal ball of beef cattle prices, the one certainty is uncertainty.
The coronavirus meltdown is the second black swan event for cattlemen in six months, but many fear this is worse than the Tyson packing plant fire.
Cattle and beef markets have decreased from April highs with uncertainty in a variety of factors weighing on markets the past month.
Uncertainty plagues cattle markets with broader trade and political strife augmented by evolving feed market conditions. How much higher corn will go depends on acreage and yield, both uncertain at this time.
The new year brings with it several changes in ongoing market dynamics, some new opportunities, and some new risks and continuing challenges for cattle and beef markets.
The current cattle market situation creates significant disparities between the current supply and demand situation and expectations for coming supply and demand conditions.
Cattle prices are on a historic ride. Producers are trying to make sense of it all, as well as industry insiders, as the COVID-19 story is far from over.