![]() As this occurs, the value of calves, feeder cattle and fed cattle will increase several hundred dollars per head over the next few years. The influence of that supply will diminish as three years of herd liquidation will reduce feedyard placements. The popular CattleFax Outlook Seminar, held as part of the 2021 Cattle Industry Convention and NCBA Trade Show in Nashville, shared expert market and weather analysis today.Īccording to CattleFax CEO Randy Blach, the cattle market is still dealing with a burdensome supply of market-ready fed cattle. While drought remains a significant concern with weather threatening pasture conditions in the Northern Plains and West, strong demand, combined with higher cattle prices, signal an optimistic future for the beef industry, according to CattleFax. Beef prices are near record high, and consumer and wholesale beef demand are both at 30-year highs as the U.S. The beef cattle industry is bouncing back from the pandemic, and continued progress is expected in 2022. Further, these prices will change with the market and operation.CattleFax Forecasts Record Beef Demand Prospects for Tighter Supplies By Russell Nemetz with the Ag Information Network They are not an expectation of what the producer will receive at the sale barn, nor an accurate reflection of the producer's actual production costs. Then, given the price of calves, feed, and the futures market, producers can make economically sustainable decisions for their operations.Īuthor’s Note: The prices in this article are for demonstration purposes. The bottom line is that the producer needs to evaluate their current situation. Feed price protection can be accomplished by making the feed purchase, forward purchase contracts, or using Call Options for some grain products. Price protection tools, like Put Options and Livestock Risk Protection (LRP) insurance, can help producers protect themselves from declines in the feeder cattle market.
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