The Fed Cattle Business has seen some interesting times in the last ten years. Almost a roller coaster ride for feeders who thought they would be bankrupted several times and assumed they were rich a couple of more.
For the last two years, the market has been falling but in December and on through the early spring, the market has recovered.
But is it a short term thing?
Ron Hays with the Radio Oklahoma Network, attended the Texas and Southwest Cattle Raisers Association meeting in San Antonio this past weekend. He spoke with Randy Blach, head of Cattlefax, a noted market analysis group.
Cattle Market Hitting on All Cylinders Right Now, but CattleFax Serves this news with a grain of salt.
Radio Oklahoma Ag Network Farm Director Ron Hays attended the Texas and Southwest Cattle Raisers Association Convention in San Antonio this past weekend and reports that one of the highlight from the event, was the analysis offered by CattleFax CEO Randy Blach, on the current position of the cattle market. According to him, the end of 2016 and the early days of 2017 have proved to be very good indeed for cattle producers.
“It’s been a really good recovery we’ve seen since last fall,” Blach observed. “The markets have come back about 35 percent, so we’re seeing cattle profitable in all segments of the industry which is a very welcome situation.”
In fact, feeder cattle in particular, have to this point even outperformed what the folks at CattleFax had projected. Blach says that right now things are hitting on all cylinders but points out, too, that the market has behaved almost erratically during the last several months and warns producers against putting all their eggs in one basket so to speak.
“We’re in one of the most volatile times in the history of our industry,” he said. “I think we all have to take it with a grain of salt. With the magnitude of moves that we’re seeing in these markets, we’re quite likely going to continue to see bigger swings from highs to low, and from lows to highs that what we’ve seen over the last 20 or 30 years. I think we just need to get used to that.”