Live cattle prices are poised for a strong year-end rebound following the steepest 30-day decline since the 2003 discovery of mad cow disease in the U.S., according to a new report produced by CoBank's Knowledge Exchange Division.
The report, titled "What's Behind the Cattle Market Price Collapse?," cites three factors for the sudden price decline in August and September: feedyards with an overabundance of unusually heavy fed cattle; exceptionally wide price disparities between beef prices and those of chicken and pork, which increased consumer purchases of chicken and pork at the expense of beef; and the market's psychological overreaction to the abrupt price drop, which accelerated the decline.