What You Need To Know About Beef Cattle Prices From Cattle Owner Perspective?
Beef cattle prices nowadays have to be closely
monitored if you want to be updated. This might
greatly affect your business decisions when it
comes to raising and feeding cattle. As you
probably know by now, the economy is not that
stable. Just in 2009, there was a decrease
of $12.50 for every hundredweight of beef cattle
prices. The beef sector has been affected
just as well.
Beef cattle prices have indeed declined. What
may be surprising is that it corresponds to the
decline in the U.S. stock market. Records have
shown that almost 90 percent of the times, the
beef cattle prices match the weekly data of the
stock market. There is no direct effect of the
stock market of course on the prices of beef
cattle, but it goes to show that it has been
affected by the economy.
There is no reason whatsoever that shows supply
might be the cause of the decline. Another
concern in beef cattle prices that greatly
alarms the consumers is that the prices of
retail beef do not lower as much as the
producers or farmers' prices. For example, even
though a farmer's price of live cattle has
decreased by as much as eight dollars per
hundredweight, the decrease in beef retail
prices don't even go low as one dollar. This
means that there has been an increase in prices
of the beef processes.
Here is a bit of good news though. There is no
fixed pattern of prices. And recently, there
have been signs that beef retail prices are on
the decline. The difference between retail
prices and live cattle prices have been
narrowing down. This is good news to all you
cattle breeders out there. But just keep in mind
that the success of the economy plays the
important role. Aside from this, another factor
that would affect the beef cattle prices are the
availability of feeds and pasture. Keep yourself
updated and aware of the trends. Be in touch
with other producers as well.
You might also want to be prepared for the
shifting of prices when it comes to seasonal
changes. Prices are usually lower during fall,
so if you plan on buying live cattle take
advantage of this opportunity. This year of
2010, there are signs of improvement because the
world's economy is recovering and beef
exportation has been improving. Despite the
damaging impacts, the beef sector is expected to
improve and soar.
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