Economist expects a more bullish future for cattle markets
A livestock economist says there’s been a shift in the tone of the Cattle on Feed numbers.
University of Missouri’s Scott Brown says the last several reports have been relatively bearish for the markets. But that’s not the case this time around. “Placements in May were 2.1% below year-ago levels,” he says. “That actually falls outside the pre-report range.”
He tells Brownfield this could be a change in trajectory moving forward. “There’s been a change in placements this year relative to 2021,” he says. “Back in February, we placed 162,000 more head. In March 8,000 head less than that. April saw a decline of 16,000 head. Now May 41,000 head less. I’ll take 4 points and make a trend out of it.”
Brown says he’s expecting tighter market-ready supplies late in 2022 and into 2023, and likely a push for higher prices.