Cautiously optimistic heading into 2022
An ag economist says there are some pretty good market signals heading into 2022 for cattle and hog prices.
Kansas State University’s Glynn Tonsor says, “if I put a bow around it, I would say fairly optimistic.”
“We now have multiple years of strong demand,” Tonsor says. “The demand side fundamentals are pretty robust and we have pretty strong signals that supply-side support is going to improve particularly on the beef and cattle side.”
However, he tells Brownfield there are some concerns. “There is elevated uncertainty on the regulatory front,” he says. “So exactly what will happen on regulations to be an operator – whether that is someone who runs a feedyard, or a packer. That level of uncertainty gives me pause.”
Tonsor says labor issues as well as the ability to maintain strong consumer demand add to the uncertainty.
AUDIO: Glynn Tonsor