After years of steadily climbing numbers and a recent period of volatile price swings, the cattle markets have made a reversal. What once seemed like an unstoppable rally has now shifted course, catching many in the industry off guard. Tight supplies, shifting demand, and macroeconomic pressures are all playing a role in reshaping the market landscape. As producers and analysts adjust to this new reality, the question remains: Is this a short-term correction or the start of a longer-term trend?
Ross Baldwin with AgMarket.Net talked with me about what is happening to the cattle trade right now. He talks about where we came from and the corrections we are starting to see, and he feels that it is not going to end any time soon.
Baldwin talks about the fact that packers are softening their bids, and the price offerings are coming down, which may play into a game of chicken with feedlots holding out for better prices.
Part of this is the fact that with the Mexican border opened back up to American packers, there is more competition for cattle producers, and now they must compete again.
So, is this doom and gloom? Is Chicken Little sounding an unnecessary alarm? Baldwin feels that it is going to wind up somewhere in between there and the market will still be fine, but we will face a volatile couple of weeks. What it comes down to is that while this is a correction, don’t expect to see the price of beef plummet at the meat counter anytime soon.
The cattle market is entering a turbulent phase as packers lower bids and feedlots resist. With increased competition from Mexico, producers face new challenges, but this isn’t a crisis—just a market shift. Expect volatility to continue, but in the end, the industry will stabilize, and beef prices won’t see drastic drops.
You can listen to my complete discussion with Ross Baldwin of AgMarket.Net below.
