A market analyst is warning Kansas ranchers not to get too comfortable with the record high cattle prices they have been enjoying recently.
CattleFax Executive Vice President Randy Blach told producers attending the Kansas Livestock Association convention in Wichita that they can continue to make good profits in the coming years. But he says cattle prices will soften amid more competition next year from pork and poultry as the nation’s cattle herd expands.
He says this year’s all-time high cattle prices were driven by a perfect storm. Rainfall broke the drought across much of the country’s major cattle producing areas, while cattle profitability sparked a herd expansion as ranchers held on to their animals. Production of competing meats like pork and poultry were also down this year.