Cattle supplies are expected to remain tight in 2023, according to beef market analysts. Less inventory is largely due to herd liquidation seen in 2022, stemming from high input and feed costs and extreme drought conditions limiting feed resources.
Additionally, drought has limited this year’s winter wheat crop, implying cattle will go to feedlots sooner than usual and in their absence next year, fewer beef cattle will be moving through the pipeline. To manage lower prices, producers can purchase put options to establish a floor price and leave the upside open for price advances, likely to be coming in 2023 and 2024.
Read more on cattle herd numbers and beef market changes here.
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