The combination of the recharge in feed grains and hay stocks, along with the prices that calves are bringing this year, is just the right set of scenarios to see a recovery in the beef industry.
“With this change in paradigm between feed costs and positive closeouts in the fed cattle markets, guys are starting to pay a bit more attention to their barns than their fields again, and it’s about time,” said Don Close, Senior Analyst with Rabo AgriFinance.
Close says he expects the Jan. 1 inventory report to have a small decline, but 2014 will clearly see some growth.
“If you take a look at the all-time record cattle numbers in 1973 and 1974 of 139 million head, we’ve steadily eroded to the 89 million head this past January,” Close said.… Continue reading
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