How Cattle Prices Are Shaping the Livestock Market This Year
If you are already involved in farming, ranching, or
livestock trading, you know that cattle prices influence everything. Whether it
is the price of feed and land to the amount you are paying (or getting paid) to
sell or sell-ready cows, the prices are changing and are changing rapidly.
The next significant shift in cattle markets in North
America is expected to occur in 2025. What are the forces behind the changes,
and how can producers ( ranchers ) and consumers ( livestock buyers ) keep up?
To simplify things, we need to break it down into parts.
The reason cattle prices are increasing (Or decreasing)
Prices of cattle do not just move. An amalgamation of supply
and demand, price of feeds, weather, and world trade influences them. These are
some of the primary reasons why the prices are not holding this year:
1. Drought and Food Crisis
Due to climatic conditions in areas where dry weather has
impacted hay and grain growth, the cost of feed has skyrocketed. Feeding a herd
can be very expensive, so when a rancher finds that the cost of feed is high,
they will sell the cows prematurely. That reduces future supply, which in turn
increases prices later down the line.
2. The Demand for Beef in the Hands of the Consumers
Regardless of the inflation, beef is already in high demand
in the U.S. and export markets such as Asia. Due to the post-pandemic recovery
of the restaurant business and the fact that the grilling season is remaining
high, customers are now willing to pay a higher price, which in turn, increases
the cost of fat cattle.
3. Decreasing Herd sizes
The past few years of poor weather and feed intensities have
caused many producers to reduce their operations. This has resulted in fewer
bulls being available for sale. In the case of Angus bulls, which are in high
demand due to the breed's popularity and the quality of their beef, prices are
increasing.
The implications for farmers and Buyers.
Everything is influenced by cattle prices, affecting both
big ranches and small family farms. When you have a herd of calves on the
ground or angus bulls for sale, you need those high prices to improve your
bottom line. On the other hand, the purchase of replacement cows or young bulls
can turn out to be much more expensive.
Sellers of breeding cattle or prime feeder cattle are doing
well in the current times. A buyer, however, is being forced to shop wiser,
think longer-term, and in the case of herd rebuilding, long-term.
What Angus Bulls For Sale?
Angus bulls are in high demand because of their genetics,
meat marbling, and efficient growth. This year, they are more popular than ever,
and the prices are going up because the ranchers aim to beef up their herds.
Also, when you are in the market, you might be forced to pay a premium or take
a shot at the auction and get out sooner before prices reach new heights.
This may be one of the best Angus bull seasons in the last
several years, if you are selling Angus bulls. The healthy, well-documented
breeding stock is attracting record attention on online listing services and regional auctions.
The cartels certainly have plans regarding cattle prices.
As a rancher aiming to give birth to a backyard baby and
purchase bulls on sale, paying close attention to cattle prices will be of
great advantage. Prices will not remain high initially, but within the existing
patterns, high demand and slow supply can lead to very high prices over some
months.
This is the time being used by the innovative producers to
re-check herd health, improve genetics, and maximize feed efficiency. It counts
dollars by dollar, especially when cattle prices are fluctuating rapidly.
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Comments (1)
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As a rancher aiming to give birth to a backyard baby and purchase bulls on sale, paying close attention to cattle prices will be of great advantage. Prices will not remain high initially, but within the existing patterns, high demand and slow supply can lead to very high prices over some months.