Bearish export news could create additional price volatility
The USDA has scaled back its red meat and poultry export projections for 2022.
University of Missouri livestock economist Scott Brown says that’s the first decline since 2015. “Maybe that’s more bearish news on the trade side,” he says.
Feed costs have been rising, and he tells Brownfield risk management will remain key. “Let’s not look up a few weeks or months down the road and say I wish I would have taken advantage to some of those stronger prices,” he says.
Brown says with current market conditions, cattle producers may want to check with their local USDA office to see if Livestock Risk Protection could be the right tool for their operation. “It’s a relatively attractive way to lay risk off, yet be able to take advantage of higher prices if they occur through the year,” he says.
And, he says, rising retail prices and declining consumer sentiment could create additional price volatility for producers.