That’s bull! Or is it? While most Americans managed to survive fairly well without the government for two weeks……surviving without a burger for that long is another story. However, given the recent disasters to the cattle market in the Panhandle as well as a decrease in the cost of cattle feed, experts say that prices will continue to increase for feeder beef.
That translates ultimately to higher prices at the beef counter. As with all increases the market will only bear so much; and just exactly how dear we hold our “Beef, It’s What’s for Dinner” remains to be seen. After all if grain feed prices are falling; consumers may opt to put more of the white meats such as chicken and pork on the table.
In the meantime, does this mean that cattle and futures are a smart investment? Although the Chinese market is closed to US beef for the foreseeable future; other markets such as Japan are starting to open their doors to American cattle. Opportunities always exist and never more so than in the wake of a disaster, such as the recent herd decimations in South Dakota.
All of the factors to make a good return on a herd investment are there; however the time line might be short. Prices must at some point plateau as heifer retention increases and stockmen rebuild their herds. But given that cattle markets are dealing with a recession, a drought (more than a recent memory for many cattle ranchers) and a unusually small calving season mean that supply is for the time being in short demand.
Whether you decide to invest in the cattle market or not; at least enjoy a burger while it’s still affordable.