Bear export news could create additional price volatility
The USDA has lowered its red meat and poultry export forecasts for 2022.
University of Missouri animal economist Scott Brown says this is the first drop since 2015. “Maybe it’s more gritty news commercially,” he says.
Feed costs have risen and he says Brownfield’s risk management will remain key. “Let’s not look back a few weeks or months and say that I wish I had taken advantage of some of these higher prices,” he says.
Brown says that under current market conditions, cattle producers may want to check with their local USDA office to see if Animal Risk Protection might be the right tool for their operations. “It’s a relatively attractive way to give up risk, but to be able to take advantage of higher prices if they occur during the year,” he says.
And, he says, rising retail prices and declining consumer sentiment could create additional price volatility for producers.
https://brownfieldagnews.com/news/bearish-export-news-could-create-additional-price-volatility/ Bear export news could create additional price volatility