Beef Demand Expected to Increase

Demand for beef ahead of the summer months is expected to increase. DTN Livestock Market Analyst ShayLe Stewart expects prices to rise once we get past the summer hump. “As we get through the dog days of summer that pressure live cattle prices, we should be expecting a tremendous market for the second half of 2022.” Drought, tight feed supplies and high corn prices have forced many cattle producers to reduce or completely liquidate their herd. That liquidation could boost prices down the road. The U.S. has the second smallest cow herd on record in the last 22 years, behind 2014 numbers. “With fewer calves and beef demand so strong, ranchers could garnish a higher premium for calves. I’m not going to say we’re going to see 2014 prices all over again, but I am going to tell producers we can expect market wins somewhat significant of what we saw in 2014”.