Market Analyst Talks About Volatile Cattle Markets

May 09, 2016

The cattle market has seen a lot of volatility in the last few months.

Brian Perillat, a market analyst with Canfax, says we've seen a major correction in the markets, adding they come down faster than they go up.

"The highs are behind us, we saw the tightest beef supplies, tightest cattle numbers, you know, back in 2014, early 2015. (Now) we're seeing more cattle, more beef production, and that's going to be negative to cattle prices, with more pork, just more competing meat on the markets," he says.

He also says marketing is a process not an event, so producers need to know their cost of production and evaluate market information before making their decisions.

"Once you know your numbers and what you need to break even, then you can figure out, is the market giving me a signal to feed these cattle longer? Or to sell them? Or maybe you need to feed them and lock in a profit today? You know, protect some of the equity invested in the cattle," he says.

Source : Portageonline

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