AGRIBUSINESS: Livestock Market Restrictions Could Continue Into 2013
If conditions don’t improve, Professor and Economist Dr. David Anderson with Texas A&M’s AgriLife extension service says both the continuing drought and high feed costs could keep restricting livestock markets into 2013.
Anderson says that the livestock markets begin with where the country is on drought and pasture conditions. Production costs for cattle, pork and poultry skyrocketed last year due to corn prices reaching as much as eight dollars per bushel. With more planted acres in 2013, Anderson sees supply increasing and demand easing, which could bring lower prices and higher yields, which in turn could bring the market back to equilibrium, although this assumes the drought subsides.