Beef Cattle Market Update

Today AgriBeef Company’s Vice President of Risk Management Kevin Hughes shares a beef cattle market update.
Hughes: “We’ve had feeding losses continue that we started seeing large feeding losses in 2015 and they’ve continued so far through the first half of this year. I think that the feeder cattle market is reflecting the equity loss that the cattle feeder has suffered. Part of that was just the fact we were coming off of such extreme highs in late 2014. There was a lot of ownership of high-cost feeder cattle inventory that has taken the industry quite a bit of time to work through and that has come at quite an expense as well. The market is returning back off those highs to levels where beef can be a little bit more competitive with pork and chicken in the marketplace. I think that is probably the reason we are going to see this market find a level here sometime later this year closer to round a $1.20 potentially in the fat cattle market. That level is what we expecting that area to be sufficient to get beef moving again in the market place and clearance for what we are seeing in a way of larger fed supplies second half of this year as well as next year.”