Supply and demand means More beef in the market should mean LOWER prices. Not higher..
(I agree with freeper Ikeon)
Too many cattle being sold should mean lower beef prices.
Perhaps higher prices later when they are few cattle to sell.
“Supply and demand means More beef in the market should mean LOWER prices. Not higher.. “
Let’s talk supply and demand. With all the breeding stock sold off for hamburger this year, what’s your calf supply going to look like next year? I like the way you deal with “fear mongering”, just don’t think past tomorrow.
I think you are right that the temporary” surge in cattle (cows) headed to slaughter may keep prices the same or lower in the near/short term, but the article is about future pricing going into 2023 and beyond and makes perfect sense.
If you read past the headline you may find more enlightenment about the situation. It is very rational and believable (smaller overall herd, higher feeding costs, drought, longer time to replace missing cows vs steers) as a basis for future increases in beef prices at the retail and wholesale end of the supply chain.
“The number of females in feedlots is up 3%, and existing herds are down roughly 2.7% from a year ago. Shagam said that combination means “supplies of cattle going to feedlots is going to be declining,” resulting in “progressively tighter supplies of all fed cattle available for slaughter as we move into 2023.”
On the short term, more beef on the market means the price to the rancher or farmer is much lower, but that is not necessarily reflected in the processed beef that arrives at the store shelf. The beef, as it is processed, is then frozen, and held off the market, in storage, for the coming much reduced beef supply. There is an approximately eleven year cycle while the numbers of beef animals are again bred up to the previous level, then the oversupply and subsequent culling back of the national herd again reduces the number of breeding animals back to a low level.
Never heard of cattle farmers. In my part of Texas we call them ranchers.
In the short term yes it will but will increase the following years for lack of product.
I guess you missed that part.
In my neck of Florida the most egregious price increases so far has been on packaged and processed foods. Many products are 20% more expensive now and in smaller packaging. That makes me think much of this is driven by mega corporate bean counters thinking they can make a buck under cover of “inflation.”
“More fear mongering and media lies, Who writes this crap?
Supply and demand means More beef in the market should mean LOWER prices. Not higher.. “
You forgot the sarcasm tag. Unless you really think that cows drop out of the sky?
the beef at the feedlots are smaller/lighter weight from the lack of grazing land because of the drought, and higher hay prices from higher fuel prices and water availibility. The prices may be lower this year because of a larger numerical amount, but next year it will skyrocket from lack of cattle being slaughtered. it takes 2 years to properly raise beef.
“More beef in the market should mean LOWER prices. Not higher.. “
Well sure in the short term term. More cow beef coming which mostly goes for hamburger.
But the cow herd takes a long time to rebuild once it shrinks. And they are shrinking the cow herd.
Takes about three years to rebuild the cow herd and get cattle to market.
Cattle cycle 101 stuff.