CattleFax forecasts strong demand and high price outlook

The U.S. beef industry is poised for another year of strong market performance, driven by tight cattle supplies and robust consumer demand. As the beef cowherd enters a stabilization phase following years of contraction, the resulting supply constraints have shifted market leverage decisively in favor of cattle producers.

Weather conditions will remain a critical factor influencing grazing availability, herd expansion and cattle prices. Meteorologist Matt Makens said La Niña this winter brings rather volatile weather changes across North America with the majority of weather extremes affecting those in the Central to Eastern U.S. For Mexico and the Southwestern U.S., producers will see drought acreage increase as it has nationwide since June.

“Drought will likely increase across the Western U.S. this spring and into the Pacific Northwest, Northern Plains, and Canadian Prairies through this summer. To watch will be the North American monsoon and how much drought relief it can provide to Mexico, the Southwest, and parts of the Plains,” he said. “Current data show the monsoon will likely produce more moisture this year than last. A strong enough monsoon can decrease precipitation across the central Corn Belt, watch July closely. Late in the year, the focus turns to the development of La Niña or El Niño.”

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