is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist

Economy is Wild Card in Beef Cattle Price Forecasts

Uncertainty continues to make it a tough call predicting how prices will react.

Most sectors of the nation's beef industry are losing money, which has caused production forecasts for next year to be reduced. Usually a decrease in production would provide a boost of cattle prices for producers and feedlot operators, but USDA livestock analyst Shayle Shagam says while that might happen, it might not due to offsetting factors including the economy.

"You do have expectations of declining production in 2009 which would tend to be price supportive," Shagam says. "But the economic situation, the macro economy in the U.S., is a real wild card. If there is a retrenchment by consumers you would tend to see some pressuring on prices as consumers either slide toward lower value cuts of meat or slide toward other meat products which may be perceived as being cheaper or cut back on the amount of dining out that they would normally do."

Those moves would all have a negative impact on the cattle sector. Shagam does think that cattle prices may improve in 2009, but says it all still depends on how the macro economy shapes up in the coming year.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.