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Analyst says cattle market could be “on fire” this year

A grain market analyst says the cattle sector is one to watch from all sides this year.

Matt Bennett with AgMarket.net tells Brownfield the cattle markets have had a stellar start to 2023.

“April cattle set a contract high yesterday and that was on a day where the corn market was up. I think that is a feature we may continue to see moving forward.”

He says if pasture conditions allow ranchers to retain heifers this spring, “Then you are looking at a cattle market that could absolutely be on fire. Out into the fall I could see $175-$180 fats, I know those sound lofty but the fundamentals suggest that is going to happen. The only thing that is going to slow it down is if you see consumer confidence go down, so if we did get into a recession that could change everything.”

He says if cattle numbers stay strong, feed usage will increase which is something grain farmers should be watching.

Brownfield interviewed Bennett during Farm Credit Illinois’ Fielding Forward Crop Insurance Meeting in Highland, IL on Tuesday.