Cattle Prices Pt 2
I’m Bob Larson. There appears to be good reason to be optimistic about where cattle markets are headed.
CattleFax CEO Randy Blach says prices are going to get higher next year, the year after, and probably all the way into 2024. He says it’s an easy conclusion when you look at demand, currently at 33-year highs.
Blach says don’t be surprised if we end up with corn prices averaging at $5 to $5.50 next year …
BLACH … “I think that’s very possible and that potentially, depending on the 2022 corn crop, they may be there or higher. We are going to be at more elevated grain prices here over the next two to three years.”
Blach says cattle raisers should be encouraged by consistently strong beef demand…
BLACH … “In the last 20 years, we’ve seen significant growth in beef demand. It’s added $240 per head to the value of cattle. Why? We started listening to the consumer. The consumer said we want a higher quality, and the industry took that to heart.”
Blach says ranchers were quick to respond, and Prime and Choice supplies have since increased 60% …
BLACH … “U.S. high-quality Choice and Prime beef is a global standard. Consumers around the globe love our products because of the safeness of the product and the quality of the product. We’ve always been the primary producer of high-quality, grain-fed beef into global markets.”
Blach says there’s a lot of trust in that U.S. brand.
