While cattle markets may not be as exciting (or frustrating) as the past few years where volatility fueled major price swings, it has at least been staying at a steady price thanks to good beef demand.
Looking forward at cattle prices, Matt Bennett, marketing consultant from Bennett Consulting, says the front-month futures going into the start of 2019 have some “carry in the market.”
“For a long time we were in an inverted market, which was a tough market to be in for these guys going out and buying feeders,” Bennett adds.
Heading into the Spring, futures markets look to be inverting again. Bennett believes fed cattle have some good opportunities in the next two to three months.
However, for those buying feeder cattle right now it could be “tricky.” April is where the price appears to be going backward.
“There have been a lot of folks who have rolled the dice for several quarters in a row and they have come out in pretty darn good shape,” Bennett says.
Since the presidential election in 2016 the economy has grown at a faster pace, helping fuel beef demand for consumers.
“People feel like they have a little more money in their pocket, and typically when they do they’re going to be buying T-bone steaks instead of pork chops,” Bennett says.
For more thoughts from Bennett about where he sees the feeder and fed cattle market going through the winter watch the video above from AgDay.
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