Cattle markets won’t see much action until spring

 

Benjamin Herrold, Missouri Farmer Today

AgUpdate - Jan 12, 2022

 

Fed cattle prices have continued to show strength to begin the new year, University of Tennessee ag economist Andrew Griffith says.

 

“Finished cattle prices remain strong in the first week of trade for 2022 and are trading with a positive basis relative to February live cattle futures,” he says in his weekly market update. “A positive basis is good for cattle feeders as they are enjoying profitable prices, and any of those who hedged cattle may be able to collect a little on the futures market as well.”

 

However, Griffith expects those prices to come back down somewhat in the coming weeks.

 

“The downside to this story is that prices are expected to soften for finished cattle over the next few weeks based on the futures market,” he says. “Softer prices the next few weeks may or may not be realized as prices are not expected to move much one direction or the other.”

 

Overall, Griffith does not expect major price movement until spring arrives.

 

“Prices will probably not see much action until the spring when prices seasonally strengthen in April and May,” he says.

 

Looking back at 2021, it was a year of increasing beef production...

 

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