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Prices in the Future aka Cattle Crystal Ball
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<blockquote data-quote="Banker729" data-source="post: 1178183" data-attributes="member: 22393"><p>This is going to last a while.... but this is not the new normal. This is the simple economics of supply and demand... demand is strong, supply is short, therefore you get a high price. When the demand drops or supply increases the price will come down. </p><p></p><p>I work with all types of cattle operations and operators.... at this time I am almost BEGGING them to look at the row crop farming situation right now. Some of these guys thought that $4.50+ Corn and $11.00+ soybeans were the "New Normal" and geared their operations accordingly with new equipment and land and intermediate and long term debt on short term profits. THIS WILL HAPPEN TO THE CATTLE MARKET... SUPPLY CHASES THE MONEY! Make the money and capitalize your company in the good years to help ride out the storms down the road. You don't want to be caught with $3,500 cows, $65,000 pickups and $3,000 per acre pasture when the calf is worth $1.35 @ 700# again. Yes $1.35, 700# steers were only 15 months ago.</p><p></p><p>Good luck all.</p></blockquote><p></p>
[QUOTE="Banker729, post: 1178183, member: 22393"] This is going to last a while.... but this is not the new normal. This is the simple economics of supply and demand... demand is strong, supply is short, therefore you get a high price. When the demand drops or supply increases the price will come down. I work with all types of cattle operations and operators.... at this time I am almost BEGGING them to look at the row crop farming situation right now. Some of these guys thought that $4.50+ Corn and $11.00+ soybeans were the "New Normal" and geared their operations accordingly with new equipment and land and intermediate and long term debt on short term profits. THIS WILL HAPPEN TO THE CATTLE MARKET... SUPPLY CHASES THE MONEY! Make the money and capitalize your company in the good years to help ride out the storms down the road. You don't want to be caught with $3,500 cows, $65,000 pickups and $3,000 per acre pasture when the calf is worth $1.35 @ 700# again. Yes $1.35, 700# steers were only 15 months ago. Good luck all. [/QUOTE]
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