January typically brings cold weather, but it can also bring complications to the cattle market.
One trader says it is his least favorite month to trade but says the coming months could be ideal for producers.
“I see a lot of confidence, especially in this cash feeder market. I mean, these prices, there was about a five or six-week stretch that they just went straight up. I feel like we saw, maybe, some heifers getting held back earlier in this Fall, and then, as we’ve just climbed fast, it’s getting tougher to tougher to think, ‘Are we going to be able to rebuild this cowherd or not just with the sheer cost that it is?’ I mean, it’s like $2,000 heifer calf, and it’s going to cost, you know, my cowboy math says about $1,000 per year on that animal,” said Scott Varilek.
The January Cattle on Feed Report comes out later this month, which will give a better idea of the cattle herd.
Beef demand could be influencing other economic sectors, as consumers adjust spending habits to prioritize higher-priced beef products.
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