If a person were to describe the overall mood of this year’s NCBA Conference, it would be descibed as price bullish and margin bearish. As we have mentioned before, it’s a cautious optimism for feeders and packers, which comes with a recognition of the volatility that producers have gone through and are also facing in the future. What’s behind this optimism? The story is really driven by the supply side of the industry. Good prices for the cow calf producer have provided some incentive for additional growth due to profitability.
The cautious side of the fence sees margin operators having to maintain vigilance in a jumpy market, being poised and ready for any short-lived opportunity that comes along. There will be little room for error, and a real need for risk management strategies as highs and lows on that profitable side can rise and fall on key factors beyond control like the weather.
In this episode of the Beef Market Update from NCBA 2012, Anne Dunford talks about why the rancher is in the drivers seat and how the feeder and packer should feel about this very strong pricing market.
If you cannot see the embedded video below click here.