The Key Limiting Factor for How High Cattle Prices Can Go in 2011- Beef DemandTue, 25 Jan 2011 18:57:03 CST
Extension livestock market economist Dr. Derrell Peel of Oklahoma State University says that supplies of beef cattle continue to shrink- and that he suspects that 2011 will be the year that we will really see how much demand is out there among US consumers. He predicts that beef demand will be a major limiting factor as to how high cattle prices can go.
Peel says that the cattle prices we have pushed to as we begin 2011 are at a level that we have not really seen on a sustained basis ever before- and he does not think its a bubble that will pop and fall suddenly and sharply. He says the pull back of last week and even here as we begin this week is not unexpected- but he thinks we will push beyond the $108 of two weeks ago as we look for our traditional spring time strength in the cattle market over the next couple of months.
Today's conversation with Dr. Peel is part one of a multi-part series of Beef Buzz reports with him on where we stand on this new higher plateau of cattle prices.
The Beef Buzz is a regular feature heard on radio stations around the state on the Radio Oklahoma Network- but is also 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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