Agricultural News
Corn and Cattle Prices Expected to Rise
Tue, 13 Sep 2011 10:43:49 CDT
Many of the record cattle prices seen recently may not actually point to high profits. Dan Basse, Market Analyst at AgResource Company, says this sluggish U.S. economy paired with rising inputs makes risk management a vital business component in the cattle industry right now.
Basse says the domestic beef demand has not been rising this year and producers are worried about the price of feed and forage with a very hot July and August. U.S. corn yields have declined and are predicted to reach as low as 148 bushels per acre says Basse. Because of the price of corn, it is likely that feed will remain very elevated says Basse.
One important aspect of the market has been cattle liquidation over the past several months. Basse says it is critical that we do not allow the cattle market to continue to liquidate. But with the drought looking to continue into 2012, especially in the Southern Great Plains, many producers may not have a choice when it comes to liquidation. Also, if the drought continues, it will cause problems with pasture availability, forage crops and higher grain prices says Basse.
Click on the play button in the screen below to hear more from Dan Basse as he shares his market outlook for both cattle industry inputs and outputs in the coming months and years. This video news is provided by Certified Angus Beef LLC and the American Angus Association.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
