Cattle Prices Continue Climb Higher, But For How Long?

  Cattle prices are breaking records and producers are rebuilding herds, but what's expected in the long-term?

Fed cattle prices keep setting record highs, now touching $170/cwt., after starting the year at $135/cwt. That begs the question: What is going on? Will cattle prices just keep setting new records? For how long? Purdue Economist Chris Hurt explains:

“The U.S. cattle cycle is well documented back into the mid-1800s. That is a cycle of rising and falling production over 10 to 12 years with a price cycle that is inverse to the production cycle. Studies of those cycles suggest that prices tend to reach their cyclical peak in the early phase of cow expansion as the industry begins to rebuild the herd.

“There are two reasons for this: first, the number of market-ready animals is already small due to the contraction that has been going on; and second, the retention of heifers and cows further reduces slaughter animal numbers even more, thus pulling down beef supplies.”

To read more about cattle prices, click here.

 

You might also like:

Enjoy A Laugh On Us! Rubes Cartoons Updated With New Laughs

65 Photos That Celebrate Cowgirls & Cattlewomen

2015 Land Price Outlook -- What Will Prices Be?

World Beef Supplies Remain Tight

7 Common Fencing Mistakes

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish