High Path Avian Flu has posed a continuous threat to U.S. agriculture for more than two years.
However, its recent shift to dairy cows has taken ag leaders and the markets by surprise. The live cattle futures took a plunge earlier this week. Tommy Grisafi, a guest on Cow Guy Close, says news of the cattle infection broke, and traders reacted quickly.
“The headline was out, and I had my head turned right and I missed the cattle ticket. And because I couldn’t hear the roar of the pits, it just happened. And then we got to a price so low the buyers and sellers showed up.”
While officials are still working to learn what impact this outbreak will have on dairy, analysts point out the multiple months of decline in milk production. Researchers at RaboResearch point back to a similar decline back in 2021, but this time, thereis not much global supply of milk or demand.
Economists with Ag Research Company believe lower corn and soybean meal prices will help dairy producers with feed costs later this year.
Watch the full Cow Guy Close segment here:
