There is quite a lot of uncertainty into global markets caused by the current war in Ukraine, and the cattle market is no exception. The thing about markets is that they do not like uncertainties, because reactions tend to be about uncertainty rather than reality, which is counterproductive.
Fighting uncertainty in the cattle industry is possible by keeping up with cattle market news. At the moment official news indicate some disruptions of grain movement from the region of the Black Sea (Russia and Ukraine are both major grain producers and exporters), as well as some concerns about fertilizers (again, Russia is a large producer and exporter). These may add to inflationary pressures. Consumers may also be affected by higher gas prices, which may result into lower beef demand. Not least, there is the threat of widespread drought on the cattle industry, which is expected to impact local forage production.
All in all, there will be challenges, in the future, so following the cattle market summary is important to get a clearer picture of the current situation and on what is expected to happen in the foreseeable future. For all that are involved in the cattle industry, there is little choice now but to stay tuned and be as flexible as possible.
