Tight supplies and strong demand have pushed beef prices and producer profitability to historic highs. After peaking in 2025, CattleFax analyst Kevin Good forecasts prices will see a modest correction while fundamentals remain strong.
Jim McCormick with AgMarket.Net says soybeans continue to sell off though as this business has already been priced into the market with the nearly $1.50 rally off the lows.
Grains futures saw sharp losses on Wednesday on profit taking according to Rich Nelson with Allendale, Inc. However, there were several other factors at play.
Strong demand supports beef prices amid economic volatility, but herd investment and growth slows as producers grapple with increasing uncertainty due to political noise.
Kevin Duling with KD Investors says the additional six cargoes of soybeans sold to China were part of the rumored business earlier in the week and have already been priced into the market.
Mike Minor says the agency reported 29 million bushels of soybean purchases Tuesday morning which brings China’s total to from 8% to 12% of the total 12 MMT commitments they’ve made.
Randy Martinson says confirmation of 29 million bushels of soybeans sold to China is already priced into the market after the big rally to 17-month highs in soybeans. So, the market is seeing a traditional “buy to rumor sell the fact” reaction.
Soybean futures closed nearly $.33 higher on the January contract. Craig Turner with StoneX said there was unconfirmed market talk of multiple cargoes of soybeans being sold to China through the Pacific Northwest.
Brad Kooima with Kooima Kooima Varilek says the fear of Brazilian beef tariffs being lowered was part of the selloff in the cattle futures last week. However, Brazil tariffs are still at 66.4% so he says it was already priced into the market.
Despite the strong political rhetoric at the center of cattle and beef prices, as well as meatpackers seeing major losses, economists say rebuilding the U.S. cattle herd will be the slowest in history.