2020 may produce a disappointing end to cash cattle prices. DuWayne Bosse of Bolt Marketing says he’s disappointed in the cattle market lately considering the market hasn’t been able to generate much excitement.
“Packers are doing a decent job kind of suppressing the cash market down,” says Bosse. “Meanwhile, the boxes have climbed up quite nicely. Packers have really nice profit margins. I think they’re trying to keep the boxes in check this week, just a little bit, so they can get more holiday volume out there. The second they get that locked in, I look for boxes to increase in price value, and I think the cash market — and the futures – eventually will have to follow.”
Sue Martin of AG and Investment Services thinks the market is preparing for a little correction in the cash cattle market, but she expects that story to change in the New Year.
“I think the box beef is about to top out here this week, but if you step back, that sets the stage for a very good market in 2021,” she says. “I think the last half of 2021, especially the last quarter, is going to be phenomenal. I think if you look at our prices on October cattle futures, I think the cash market will be way higher than where we are today.”
Bosse also thinks the cattle price story in 2021 is a positive one, especially considering the renewed demand for beef.
“I look for a very good cattle market in 2021,” adds Bosse. “Demand is good. I think we came out of COVID-19 learning how to cook at home, and I think that’s a good thing for cattle long term.”
