USDA’s twice a year cattle inventory numbers showed the herd below pre-report expectations and as one analyst tells Brownfield, that has bullish implications for producers.
Kevin Good Senior Market Analyst at Cattle Fax tells Brownfield we may see some expansion in two or three years but over the next year or so, the tight numbers should support prices, “The combination of liquidation now for the 14th out of the last 16 years on the beef cow side, along with continued strong exports means we’ll have very tight domestic supplies and should expect to see higher prices again this year.”
Good adds that even with 2011′s calf crop being the smallest since 1950, 2012 may be even smaller with weather during the second half of 2011 limiting conception rates.
Kevin Good talks about the implications of the inventory numbers (2 Minutes, 21 Seconds, MP3)
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