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Livestock economist: Don’t get lulled to sleep by record prices

A livestock economist says the cattle market could see even more volatility and having a risk management plan is critical. 

University of Missouri’s Scott Brown says, “Don’t get lulled to sleep by record prices.”

He says placements jumped significantly in May and were outside the upper end of pre-report expectations. “If you believe all the other data in terms of cow inventory, etc., it probably does mean fewer placements later in the year,” he says.

He tells Brownfield while prices do have the potential to move higher, nothing is guaranteed. “We’re at some phenomenal prices that gives us some opportunities that I don’t want to see folks miss,” he says. “Maybe you’re willing to risk it on a portion of your inventory, how you wait for markets, but maybe for a portion that’s worth doing some risk management on.”

On Feed numbers were also outside pre-report guesses, and Brown says that adds more pressure to prices.

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