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re: Buying sides of beef
Posted on 10/2/14 at 4:47 pm to Huntinguy
Posted on 10/2/14 at 4:47 pm to Huntinguy
quote:
Bear in mind that ethanol is on its way out, and grain prices are falling....with beef eventually to follow.
Actually no. Cheap corn is helping beef prices remain high. Feed lots can buy corn for cheap, they can afford to feed more calves, thereby increasing the demand for feeder calves. Like someone else said the US cattle herd is at the smallest its been in 60 years. Demand for beef has not shrunk to coincide with the loss of cow numbers. The feed lots are buying up all the cows they can, but the reduced number has generated more competition, thus more people bidding on fewer cows. This all leads to more demand for cows and higher prices of cows.
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