Beef Buzz News
2022 Cattle Market Forecasts Point to Higher Prices and Higher Break-Evens
Mon, 22 Nov 2021 10:35:58 CST
In the last few trading days, leverage seems to be back on the side of cattle producers. A few weeks ago, Don Close, senior vice president for food and ag research, animal protein at Rabo AgriFinance, spoke with Ron Hays, director of farm and ranch programming for Radio Oklahoma Ag Network, about the shift.
Listen to Ron's conversation with Don here.
“The market is finally on a much better foundation for where we will be for the remainder of the year,” Close said. “I think the real positive component is setting the stage for the price outlook that we have for 2022.”
As supply and demand continue to equalize, profit from 2021’s explosive beef demand will finally begin to trickle down to producers, according to Close. He said the market should follow this trend, developing into a strong market throughout 2022.
“Our forecast for 2022 is an annual average price of $140 - I still think that is really aggressive,” Close said. “If we are going to see an annual average of $140, when we get to that spring high (in 2022) we are going to need to see that then if we are going to be on our (projected) average.”
Additionally, he said he does not think markets will observe much seasonal decline from spring highs to summer lows.
Click on the LISTEN BAR below to hear more from Ron Hays and Don Close as they talk about forecasts for the 2022 cattle market.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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