Cattle Markets Volatile Reaction

Comments from President Trump regarding the beef industry and his goal to lower consumer beef prices had a major knee-jerk reaction on the beef markets. R-CALF United Stock Growers of America, CEO Bill Bullard, explains the market's reaction and what's driving the changes.

“But what that indicated to us, what was a clear indication, was that the marketplace is broken because the market responded in a very wild fashion, just upon the announcement of the president. And it tells us that our market system is entirely broken, that the market is too thin when a market reacts simply to statements and rumors, as our market does, it's an indication of market failure in the industry.”

Bullard says comments like importing more beef from Argentina and conducting an investigation into the large meat packers prove the volatility of the cattle markets.

“And so we saw that. First, the markets collapsed after that announcement, and then the Secretary of Agriculture talked about the plans on the New World screw worm, and that sent the market reeling again. And a market shouldn't do that. A robust market wouldn't do that, but an ultra-thin market like we have in our cattle industry today, is one that is highly sensitive to any adverse information.”

R-CALF USA’s is Bill Bullard.