I can remember back earlier in the year when Anne Dunford told me that, “higher prices doesn’t mean higher profits.” It would seem that this is proving to be very true in the cattle markets. Feedyards that locked in with contracts are disappointed and wishing more cattle were being sold in the cash market. The frustration heightens as you try and restock inventory in a very steamy feeder market.
It would appear that the bullish prices are not leading to hefty margins or any margins at all for many feeders. With cattle prices rising one has to wonder what is happening at the retail level and how the consumer is going to handle higher meat prices. Even more critical for the beef industry is how beef will rise in the grocery store in comparison to pork and chicken. In this episode of the Beef Market Update with Anne Dunford we discuss it all and try and bring some sense to all this market noise.
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