Predicting Cattle Markets Getting Tougher for One Analyst
Weather and markets are still the two most important things to farmers and ranchers. And in that vein, recently I caught with CattleFax market analyst Troy Applehans and I put him the hot seat and asked him to give us a prediction on where this cattle market is headed.
He said predicting the market has always been difficult. But, given the challenging market condition in today's U.S. beef cattle industry, it's become even more challenging.
"We study it and it's getting more and more difficult to predict it. It really is. The volatility over the years is at an all-time high and these market moves from highs to lows are just more drastic anymore. You know these three standing deviations moves that are supposed to occur twice out of a hundred years are occurring pretty frequently. And those are things you can't predict. You can two standing moves but it's the three standing moves in particular to the downside that are hard to predict and can drastically drain equity positions."
Learn more about CattleFax by visiting www.cattlefax.com.
That's your Land and Livestock Report-I'm Russell Nemetz.