Ag economists are closely watching the cattle markets in the coming weeks. They are starting to notice signs that prices could soon shift.
“Quite a few people are nervous that some of the consumer and macro-economic signals are starting to decline, and that could impact meat prices. There’s also a concern about the international markets. This week, the headline was about the Chinese government not renewing a license for U.S. meat export facilities and what that could mean for meat prices,” said Ben Brown.
Brown says demographics play a role, too. He is seeing a shift and says producers are taking advantage of high cattle prices.
“I would also say we are seeing some shifts in demographics. That’s playing out in the data. Producers are choosing this as an opportunity to sell out, take advantage of high cattle prices, and sell out. You know, those cows are going down the road to a different operation. Well, I take that back. A lot of the cows are ending up in processing facilities.”
Brown says drought has also been a concern over the last year, leading to fewer grain-consuming animals. While a lot of different fators are at play right now, he says he is staying focused on market trends.
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