Cattle Market Volatility Continues

Cattle markets have faced sharp swings in recent weeks, with prices falling hard after reaching record highs earlier this month. Beef industry expert Cassandra Fish says uncertainty and emotional trading have rattled the industry. “The market was near or on contract highs on October 16th, and then there was a tweet that night, and the market fell below the limit on the 17th,” said Fish. “We still have the tightest fed cattle supplies ahead of us, and although we’ve stabilized the U.S. beef cow herd, we have not yet begun to expand it.” Fish says political headlines and trade uncertainty are adding to the instability. “You’ve created a real confidence crisis for many participants in the cattle and beef industry today,” said Fish. “If we could get the headlines to go away and get back to focusing on our supply scenario, then we might find our footing and establish a decent trading range, but it remains to be seen.” Fish authors a daily market column called The Beef.