Feeder Cattle Hard to Find

There's no doubt the cattle market is an unchartered territory, with record breaking prices and never before seen numbers. Matt Bennett, market analyst with AgMarket.net on what's driving the market and where it could be headed next.

“The ones that I'm a little more concerned of Of course, these guys trying to buy feeders. Right now, you can't buy cheap feeders anywhere. It's a very challenging situation. The cattle producer is going to have to understand, you know, they stepped out on a limb of faith for a long time, you know, and then this year, they're going to have to really do so, because even though cattle numbers are tight, and they're going to stay tight for a long time, you know, you've got to understand some risk management might be prudent, especially knowing that the funds have been very long cattle for quite some time- something spooks them at some point. And it doesn't mean fundamentals are bad, but it might just mean they want to take some profit off the table. So you know, I really like the action here in cattle, but I would still be very take a very cautious tone.”

In addition to drought drover sites, record prices are a result of historically tight supplies confirmed in us days cattle inventory report showing the smallest inventory in nearly 65 years. Prices have also been supported by strong export demand and the fact that US consumers have not experienced sticker shock at the grocery store.