Cattle prices continue to push into record territory, but Van Ahn and Company Marketing Specialist Steve Witt warns the market may be nearing a tipping point. “Labor shortages are keeping the packing plants running at limited capacity.” Witt cited recent days when cattle slaughter was under 100,000 head “and at times, at peak capacity, they’re around 125,000–126,000 head so the limited supply is definitely affecting the cutouts.” Risk management strategies are advised. “We could lose $25, $30 of premium, not really doing a lot of chart damage, but we could crack that much lower just on some major trade news or all of the bans being lifted again.” Witt added that the biggest question going forward is how long consumers will continue to pay elevated prices.
