Cattle Prices: What's Going On?

2021-2024: Producers' Stronghold

• Market Dynamics: Producers had significant control over the market.
• Key Factors:
• Monetary Policy: Large-scale money printing.
• Weather Conditions: Dry weather impacted supply.

2025: Government Intervention

• Border Closure: Mexican border closed.
• Import Taxes: Heavy taxes on imported beef.
• Market Impact: Further tightened supply, driving prices up.

Potential Easing of Measures

• Price Prediction: Feeder cattle prices could drop to $241.00 (CME feeder cattle index).
• Timeline: Changes might take until next year to materialize.

Market Uncertainty

• Trump Administration's Actions: Adding to market unpredictability.
• Fat Cattle Prices: No clear cash index; experts use weekly continuation chart.
• Price Prediction: Fat cattle prices could drop to around $182.00.

Rising Input Costs

• Diesel Fuel: Increased by $0.40 to $0.45 per gallon in three weeks.
• Corn Prices: Unexpected rise.
• Soybeans: Continued climb.
• Wheat: Experts suggest it might be a good time to buy.

Economic Concerns

• Interest Rates: Remain high and stagnant.
• Economic Stimulus: Trump administration's efforts not lowering rates.
• Inflation: High and potentially worsening early next year.
• Consumer Impact: Holiday spending and rising credit card delinquencies could strain consumers.