Positive Cattle Markets Ahead

Tyler Schau AgMarket.net hedging strategist is optimistic when it comes to the cattle markets for the rest of the year.

“I'm pretty positive the cattle market going out for the next 12 to 18 months. You know, the USDA came with a cattle report earlier in the year. It wasn't really a big shocker. We've got the lowest beef cow herd we've had since like the 1960s. So we're going to struggle to find enough animals to put in the feedlot. I think the big important thing to watch is gonna be the drought in the southern and the Central Plains. As soon as they get rain, drought-busting rain to where they feel like they can take heifers hold them back, rebuild their herd because they feel like they've got enough feed and hay available for next year. I think that's when you really see that that supply of feeder-ready cattle drop and then the race is on for feed loss to go find those feeder cattle.”

If the drought persists. He says he expects the cattle markets to still remain positive.

“If we maintain this drought if we stay in it again for the rest of this summer. I still see as positive to feeder cattle prices and fed cattle prices that that last big leg up is going to come when the drought gets Busted.”

Hedging Strategist with Agmarket.net, Tyler Schau.