With the discharge of the January 1 cattle stock report, there have been a number of questions regarding what it means for cattle markets the subsequent a number of years. If the stock report is paired with file low hay shares and excessive feed costs then some longer-term implications are obvious.
The primary remark is that cattle costs are prone to improve and be sturdy for not less than three years. Nevertheless, costs might not escalate as rapidly as some might imagine, as a result of many heifers and cows will proceed to enter the slaughter combine as a consequence of restricted feed sources and the uncertainty of with the ability to feed these animals by means of the rest of the winter and early spring. With many heifers nonetheless destined for the feedlot, it’s going to possible be the second half of the 12 months earlier than any kind of herd enlargement can start.
Feeder cattle costs will escalate rapidly as soon as heifer retention begins, however the market continues to be a number of months away from this. Delayed heifer retention this 12 months ought to end in sturdy feeder cattle costs in each 2024 and 2025.
