The price of corn will weigh heavily on calf prices.
A Texas AgriLife Extension Service livestock economist has forecasts continued strength in cattle prices heading into 2011, but warns to keep a watchful eye on the corn supply.
David Anderson spoke at the recent Brock Faulkner Cattleman's Clinic/Doug Davidson Hay Show in Bryan, TX. He says that cattle numbers will be fewer over the next decade, but the price of corn will dictate the level and spread in calf prices.
"I think we will continue seeing beef production and cattle numbers drop off in the next couple of years," Anderson says. "We are forecast to produce 25.4 billion lbs. of beef in 2011 vs. 25.9 billion lbs. in 2010. That will lead to increases in price, but it also depends on corn prices and (their effect on) calf prices."
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