Are There Opportunities In The Cattle Markets?

The Cattle Markets showed weakness heading into the fall season, but now that we are into late October, the markets seem to be showing some promise.

“I think we'll see some ups and downs," said Jess Peterson, Senior Policy Advisor for U.S. Cattlemen’s Association.  "This fall run always seems to have that. I think January is going to kick off extremely strong if we can obviously [bring down] some of these global pressures and whatnot.  But again, you should be able to correlate the markets with what is happening globally and look at that Cattle on Feed Report, anything that gives some type of indicator, and there should be some correlation.  When there's no correlation, then we start looking: is there not cash-traded cattle that you're talking a lot about?  Are they using these sweetheart deals?  Are they bringing in these Mexican cattle and putting that downward pressure?  So, that's what the U.S. Cattlemen’s Association looks at.  We're staring at that and say, ‘All right, well, the board was down a little bit,’ and then you walk through the different reasons why.”

Looking to the year ahead, Peterson said the ball is rolling, and opportunities are there.

“And as we kick off 2027, we want to make sure that it stays in place," Peterson noted.  "There are not a lot of times you can walk around in agriculture and say the optimism and confidence is there.  We have it right now.  So those who are out there, stay in it.  Lenders keep lending because these cash swings are pretty high right now to keep your operating notes there.  So, lenders keep lending, and ranchers and farmers stay in it.”

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