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Livestock economist has an optimistic outlook for cattle markets
A livestock economist says he’s fairly optimistic about the cattle market over the next several months.
University of Missouri’s Scott Brown says especially as you look at the September placements. “The pre-report estimates actually would have suggested higher placements relative to a year-ago,” he says. “But the report we got today, down 2.9%, so relatively positive or bullish for us, I think.”
He tells Brownfield demand, both domestic and global, will need to remain strong to keep prices supported. And, when he looks at the overall picture, the positive news outweighs the negative. “Drought in this country is going to have a big effect, Brazil, also maybe pulling back on the supply side and a little less engaged in 2022,” he says. “There’s probably a lot of strong demand in places like China for some US beef. So all of that is the positive side.”
However, Brown says the US could see increased competition in countries like Japan as Australia’s cattle herd continues to rebound following several years of very dry weather.
