Thankfully, the feeder cattle market does have some positivity backing its position. While it’s undoubtedly true that feed costs are high and that marketing cattle this year could be a colorful challenge, we can’t look at the market through a singular perspective. Just as it’s important to note input costs, it would be careless to overlook the current cycle of the U.S. cow herd.
With the nation’s cow herd being in the beginning phases of a liquidation cycle, fewer mature cows lining the countryside yields fewer calves to be marketed in the upcoming years. With fewer options to sort through, historically, prices grow stronger as buyers must compete against one another to procure the calves they need.
It’s hard to say which contributing factor will have a greater pull on the market at this point, but regardless, producers should begin thinking about how they are going to approach marketing their calves this year.
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ShayLe Stewart can be reached at email@example.com
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