When you look at the cattle prices, you have to feel pretty good overall. Markets seem to be favoring producers. They are able to hold out until the packers are paying what they want. While inputs and feed costs are higher as well, you should still be able to make some money. Market analysts are certain that owning cattle in the next year or so is going to pay dividends.
But one group is telling producers to pump the brakes and take a look around before you go full throttle.
During the National Cattle Convention in New Orleans, Rabobank released a report that shows they believe there are some chances for a few roadblocks in this cattle market. Rabobank?s Animal Protein Senior Analyst Lance Zimmerman explains.
As we said, input costs are a big thorn in recovery of herd numbers.
Zimmerman advises producers to take a look at your profit margins and breakeven level before you jump in head first.
