I really think that the long term future of the beef market is sharply lower. The general economy is not that good. Even with gas prices down just about everything else is up. So the average consumer just does not have the money to buy higher priced beef. When hamburger is $5 a pound in the store and you can buy hams for $2 which is going to get bought? So even with feed cost coming down the feeder cattle market is heading lower.
I also think that the price if cows and bred heifers needs to come down before there is any herd expansion. Right now a heifer is just worth too much when sold on the fat market.
Heard some guys talking about how $3000 bred heifers would pencil out. They where talking about the calf being worth $1500 next fall. I think they where way off in their numbers. I do not think that the calf market will be that good.
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