Strong prices predicted for US beef in 2015
At the popular CattleFax Outlook Session held yesterday (5 February) at the event, which is coupled with the National Cattlemen’s Beef Association (NCBA) Trade Show, analysts told the crowds to expect fed cattle prices to average the mid $150s - a slight increase on last year.
It also predicted that prices would trade in a range from near $140 up to approximately $170.
The improved forage situation, lower grain prices and record margins last year, for feeders and stickers, were noted as the main reasons why "cow-calf producers will remain in the driver’s seat for the year ahead".
Randy Blach, chief executive of CattleFax - a member directed corporation, staffed by market analysts, data collectors and researchers, among others - said that despite exceptional prices last year, he expects the market peak is behind the industry now.
"We put the top in the market in the past year and the signal for expansion has been transmitted. We will begin to see some modesty expansion in herd numbers now and that will cause prices to trend lower in the years ahead than what we saw in 2014," he said.
Blach added that growing supplies of cattle and beef over the next few years would see prices normalised.
"Prices will then retreat back to the lower end of the new trading range," he said. Despite this cow-calf producers should expect to see relatively strong returns continue over the next four to five years, he added.
More than 7,000 people registered to attend the Convention in San Antonio, Texas, which takes place from 4-7 February.
