# How Did Cattle Prices Get So High?



## Vol (Jul 5, 2009)

From Purdue University.

Regards, Mike

http://www.agweb.com/article/how_did_cattle_prices_get_so_high_NAA_University_News_Release/


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## Nitram (Apr 2, 2011)

Correct me if my memory is faulty but 40+ years ago I remember dad selling calf's like mine at .70 $ so it is time for this correction in the prices. IMHO


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## Waterway64 (Dec 2, 2011)

My greatest fear is not the falling away of beef prices, but rather inflation of prices of inputs and living expenses quickly eating up the profits we are enjoying now. I hope as much as anyone I am wrong. I am afraid all the new taxes are going to have a very negative impact on most of us. Mel


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## Tim/South (Dec 12, 2011)

When locals ask me why beef prices are so high, my reply is prices are where they should have been long ago.

There is a new sheriff in town when it comes to beef. His name is Cash. Cash prices are leading the futures and doing a good job. In the past, future prices dictated cash prices. Twice in the last two weeks futures fell with no explanation. Cash prices did not falter (to the dismay of those dealing in futures).

Beef exports are up. While the export market is a fickle one it has played a role in establishing the demand for North American beef.

There is a shortage of beef. There is currently a demand for beef. We do not eat futures, we eat beef.

Everyone I know who has stayed in the game is retaining heifers. They are also not culling quite as hard in the fall. If a momma cow can raise a $1,000 calf she is given another year. Even when eventually culled she is bringing $1.00 lb. or better if she is not pulled down too much.

The bottom line is America loves beef. I was once afraid beef would price itself out of the shopping buggy. Does not look like that is happening.


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## somedevildawg (Jun 20, 2011)

Waterway64 said:


> My greatest fear is not the falling away of beef prices, but rather inflation of prices of inputs and living expenses quickly eating up the profits we are enjoying now. I hope as much as anyone I am wrong. I am afraid all the new taxes are going to have a very negative impact on most of us. Mel


Everything is going up so fast it's hard to wrap your head around it....a $100 bill is equivalent to what 20 yrs ago.....$50??? Fertilizer goes up, them trickledown economics go to work, beef has to go up eventually, it's about time....


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## deadmoose (Oct 30, 2011)

I accidentally watched part of a livestock auction yesterday. $2 for 6 weight steers. Good time to be a cow calf guy.


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## Tim/South (Dec 12, 2011)

deadmoose said:


> I accidentally watched part of a livestock auction yesterday. $2 for 6 weight steers. Good time to be a cow calf guy.


Last summer when auction prices fell due to high corn prices I was doubting the decision to add momma cows. We all figured cattle prices would eventually bust out of the packer/retail control. It was tough at times having to sell calves in a depressed market while retail prices were setting new record highs. Things have come full cycle now and the 47 bred momma cows we added turned out to be a good move.

I would hate to be trying to buy bred cows now.


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## Waterway64 (Dec 2, 2011)

I take to task the title of this thread. Have you spent serious time at the meat coolers? Yes there are buys for prudent shoppers and some are still beef. Many aquatic and processed meats are higher priced and pork prices are maintaining their normal relationship to fresh beef. Dropping feeder calve back to say $1.30 is not going to increase beef supply. With the increasing exports of beef i don't think the rest of the world sees our beef as high priced and will continue to compete with the American consumer for our beef. My .02. Mel


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