I saw an amazing graph last night, courtesy of CattleFax. It illustrated that, from 2002 to 2008, the average value received for a fed animal increased by 6% annually. While that’s not bad, the average value of a fed steer from 2009 to 2013 has increased 11% annually and a total of $600 over that time. Those are the kinds of numbers that should get people excited.
When the CattleFax analysts finished talking about the possibility of $2 calves, $1 slaughter cows, and $4 corn, I couldn’t help but pinch myself to make sure I wasn’t dreaming. Some of the slides displayed by CattleFax also had cattle feeders thinking that they were dreaming. But those dreams were more of a nightmare, as overcapacity is actually growing in the fed industry as supplies continue to tighten.
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