Cattle Prices Have Risen Only 1% This Year

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“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
The Daily Reckoning Australia

Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
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Comments

  1. 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?

    knowingisbeing known
    June 27, 2008
    Reply
  2. 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??

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

    Reply
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