“Who is going to flinch first?” Dan Basse, president of AgResource Co., said that’s the main question he and his team ponder when looking at this “plateau” phase in the ag markets.
The cattle market zig-zags up and down more than ever, but so do prices for the end product, says a boxed beef reporter for Urner Barry, in Toms River, N.J. “Ranchers understand not only what it takes to raise an animal, the science of it, but also for what market and when,” says Bruce Longo. “The same happens in the beef market.”
The 2016 cattle market has disappointed many sellers, especially those only focused on more pounds or efficiency. Quality has played an increasingly key role since the “Great Recession” in 2008, and it promises the most stability going forward says CattleFax analyst Lance Zimmerman. Six years ago as a graduate student at Kansas State University, he and economist Ted Schroeder created a demand model that stretched back to 2002.
Amid the forest-rimmed meadows and newly cross-fenced pastures of western Russia, a quarter-million young beef cows earn their keep by producing high-quality beef while building rural communities and a sustainable future for families on two continents. The Certified Angus Beef ® (CAB®) brand began production and sales in Russia this spring, through licensed partner Miratorg Agribusiness Holding, said CAB President John Stika.
If you don’t believe the global factors affecting the U.S. cattle market are numerous and complicated, you probably haven’t heard Dan Basse, president of Ag Resource Company, give an economic outlook. By 2040, Japan’s population will drop by 25.3 million people. Today, the Black Sea region exports 34% of the world’s wheat. Brazil’s currency, the real, has been weak for several years versus the U.S. dollar.
In a cyclical business, when you’re riding the good times, it probably means you’re not far from the bad ones. So it is with the cattle business, said Dan Basse, president of Ag Resource Company, as he kicked off the Feeding Quality Forum in La Vista, Neb., and Garden City, Kan., this week. “It’s not like the mid-1980s, with land values collapsing. It’s more like a slow bleed,” Basse said of the general “downturn” in agricultural commodities. Ag equipment sales have slowed, land prices are going down and grain trade has softened as the dollar strengthened.
Supply challenges—that’s what limits this brand. Throughout our history, as we’ve added supply, we’ve been able to grow demand in tandem.
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