The main threat to the future high calf prices is feed costs, one Texas agricultural economist said.
“Look for continued high prices,” said David Anderson, Texas A&M AgriLife Extension Service economist. “Tight supplies are underpinning the market. I think we are going to have higher calf prices than we did in 2013 and higher prices in 2015 than we did in 2014.”
According to Ag Web, fed cattle set new record prices at the beginning of 2014.
The only concern for the record beef prices is the 2014 corn crop, Anderson said. To maintain these high calf prices, a record corn crop is needed. But he estimates fewer acres of corn will be planted this year as some farmers shift to soybeans to take advantage of potential prices.
Despite record-high prices, demand for beef remains strong.