Large supplies expected to pressure 2018 livestock prices
Continued expansion of the U.S. cattle and hog herds will put heavy pressure on prices for the rest of this year and continuing into 2018, says University of Missouri Extension Agricultural Economist Scott Brown.
Strong demand and low feed prices have provided profitability levels that have encouraged farmers to maintain or even increase production, he says.
“While this is welcome news for the industry today, it may be setting up a situation in which prices suffer a severe drop if demand growth is not able to keep pace with further increases in supply,” Brown says. “While U.S. per capita meat supplies are expected to continue growing in 2018 and 2019, the relatively rare phenomenon of higher prices along with higher supplies is not...
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