Watching FUN Fundamentals in the Cattle Market
It’s time for your Southeast Regional Ag News. On the Ag Information Network, I’m Haylie Shipp.To get a handle on the big picture on what’s going on right now with our domestic cattle markets, I talked last week to ShayLe Stewart, a livestock market analyst with DTN. She explained that we’ve got a whole lot of bull…as in bullish…going on in the cattle market…
“Fewer beef cows means fewer calves in the market next year. Lower supplies means heightened demand for those prices and hopefully cow/calf producers are going to see stronger prices in the year ahead.”
Stewart says that as we’re watching these strong fundamentals, there’s a big picture back story…
“Those traders are looking at this market and they know that we are being bridled with heavy inflation. They know that we’re going to see higher interest rates in the weeks and months ahead. And they know that we are just really entering a time in which not only our own domestic economy is kind of teetering and on the breaks, but also the global economy. And that’s not even to mention the unsettled state of what’s going on between Russia and Ukraine.
She emphasized that now more than ever, you’re no longer dealing with just cattle…
“I think that we have to be plugged in and engaged in these markets. Because unfortunately the days of just watching the cattle market and getting to think the cattle market only trades cattle are done and over. This market is so much faster paced and it’s global now as opposed to simply being a commodity market.”
Again ShayLe Stewart, DTN livestock market analyst and host and founder of Cattle Market News.