A query acquired this week was if I assumed the cattle market was taking the form of 2014 and 2015.
First, the skyrocketing of costs in 2014 and 2015 seem to be yesterday, however that was eight years in the past. Second, there are a number of similarities in immediately’s setting and what led as much as the document cattle costs of 2014 and 2015. Third, I hope it’s not a repeat of that point interval.
Drought in cattle nation from 2011 by means of 2013 is what precipitated a smaller cattle herd in 2014 and thus led to larger costs. Extreme drought in 2012 in corn producing states that resulted in larger feed costs additionally contributed. Costs elevated all through 2014 and 2015 and a part of 2016 earlier than the underside fell out of the market.
I do see similarities between the present setting and eight years in the past, however it’s uncertain that cattle producers will likely be as aggressive to rebuild the cattle herd as within the earlier time interval. Thus, costs will improve and certain achieve this for an extended time frame, and the hope is that costs don’t decline as shortly on the opposite aspect.
Supply: College of Tennessee
