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Midwest | Interesting market dynamics. Packers restructuring because of losses. Cow herd shrinking causing cost of sales in the feedlot to increase. Cattle fed to higher harvest rates so total tonnage hasn’t changed that much. Foreign cattle production is expanding due to lower costs. Herd replacement cost is high. Grazing grass has competition from other uses than grazing. So where does this end up? All three sectors are trying to go least cost to survive. It always goes from the top down so my take is the least cost operator will survive after surviving a massive financial haircut. Which makes a labor surplus. But cowboys will always be cowboys and turn into truck drivers when they will be forced to downsize. And America has a shortage of truck drivers so there you go.
Edited by Cornstalk1 5/9/2026 09:55
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Has beef prices gotten too high?
