Cattle Prices Have Risen Only 1% This Year

“Bill,” began a message from our farm manager in Argentina, “we are in the wrong business.”

Yes, we are in the cattle business – in Argentina, no less. Cattle prices have risen only 1% this year. South of the Rio Plata, the cattle business is worse. Farmers have been getting rid of cattle so they can plant corn, soybeans and wheat. Result: cattle prices have fallen. Often, it’s hard to find anyone who will even take the cows away. Why? Because buyers can’t get them to market, since the grain farmers have blocked the roads into Buenos Aires.

That’s the nice thing about being a grain farmer, you have time on your hands. You can hang around a roadblock…or go give your congressman a fright. Not so with dairymen and cattlemen. They’ve got to stay near their animals.

Yesterday, apparently, the blockades in Argentina were lifted…but we doubt we’ll see much pick up in the beef market.

Bill Bonner
Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.
Bill Bonner

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4 Comments on "Cattle Prices Have Risen Only 1% This Year"

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knowingisbeing known
Guest

Why do you doubt a pick up in the beef market, surely it like all other foods will be impacted by inflation? Or is the world long beef and short everything else?

tom
Guest

Grain farmers disrupt cattle supply chain = reduced beef supply.

Cattle farmers switching production to grain plantation = reduced beef supply

These factors are generally taken as in support of higher prices. Or has the world gone vegan overnight??

Pete
Guest

I don’t know of any farmers changing from cattle to crops in Australia

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