LANCASTER, Wis. (RFD-TV) — U.S. cattle herds have yet to see much expansion, keeping prices higher for producers.
Strategist Tim Strunk with AgMarket.net believes it will still be a while before a shift is seen.
“We have seen some widespread rain in the Plains, with more on the way, and that’s a big step into seeing some of this. Another factor, we’ve seen cull cow prices higher, essentially, over the last several weeks. It’s not as attractive to cull cows, so believe it or not, you wouldn’t normally be quick to associate falling or lower cull cow prices with expansion. When there’s not as much financial incentive to cull those cows, and calves are still worth a lot, it’s like, well, we’ll keep that old cow around another year and get another calf out of her. You can actually see that reduction in cull cow prices increases herd size, herd expansion. I think there is some of that at play.”
Strunk and other analysts say it could be two years before any measurable herd expansion.
