Feeder cattle prices are facing some challenges, although University of Tennessee ag economist Andrew Griffith says the right kind of price action could mean a gradual cattle herd expansion, which could prolong higher prices. “Pressure on feeder cattle futures continues to hamper cash prices at local auction markets, and the hope of a wild and untamed run to higher prices seems highly unlikely at this stage in the game,” he said. “As has been mentioned several times, steady prices at an elevated level would be good for producers as it will extend cattle herd expansion over a longer period and thus result in strong prices being experienced for a longer period.
” Griffith said producers might want more today, but in the long-term elevated but steady prices could be a good thing. “This is not a popular idea amongst the masses as most people want all they can get today, and they will worry about tomorrow when it gets here,” he said. “.
..The hope would be for producers to still be in business the next several years, which means many folks will be in the business long enough to see prices decline again before increasing at a point further down the road.
” Griffith said the cattle market is heading into an important time. “The market is approaching the season when the spring-born calf crop is weaned and brought to market,” he said. “One should expect freshly weaned calf prices to seasonally decline moving through September and October and potentially into Novembe.