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Analyst says beef market “hasn’t hit bottom yet”

A financial analyst says beef cattle prices have not hit bottom yet.  Mike North says there is a 10-year cycle in the beef market, and cites low cattle prices in 1986, ‘96, 2006, and now in 2016.   He expects the market to recover slowly.  North says, “We look then, and we were making low prices in the cattle markets, so for the sake of the cattlemen, we sure do hope, of course, that this turns around and does so quickly, but that’s not been our history either.  We often see it hang around for a year or two at these levels once we’ve dropped.”

North tells Brownfield record inventory on hand right now is likely to keep holding beef prices down.  He says records were set in July for the amount of poultry and red meat in cold storage, and the market will favor consumers.  He says, “Now that the grilling season is over and we’re working into the fourth quarter, which generally sees even more inventory growth, it’s going to be time for those in the warehouse business to start cleaning the freezers out, and a lot of that is going to have to show up in the market, and when it does, it’s going to put some pressure on price.”

Mike North discusses beef, corn, soybeans and other world market factors with Brownfield’s Larry Lee