Blach Anticipates Improved Prices for U.S. Cattle Industry

When it comes to the future of the Cattle industry, CattleFax CEO Randy Blach said there’s reason for optimism.

“Prices are going to get higher next year, the year after, and probably all the way into 2024. So, we should see improved profitability for the industry in total, which is really needed. We need to see improved profitability, particularly back for our cow-calf and stocker operators.”

Driving the increase, Blach noted, is a classic example of supply and demand. The nation’s cattle inventory is shrinking, caused by extreme drought in West as well as the Northern Plains. At the same time, beef demand is at a 33-year high. This signals good news as the industry recovers from price swings faced in 2020.

“We made long-term cyclical lows in the spring of 2020. Prices are higher. For example, calf prices are $20 to $30/cwt. higher today than there were a year ago at this same time. Fed cattle prices today are $25/cwt. higher than they were a year ago at the same time.”

Blach said to also expect grain prices to trend higher in the years ahead, but big take away for him is cattle operators should be encouraged by consistently strong beef demand.

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