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The cattle industry is about to usher in a turning point. Slaughter companies and cattle farmers are fighting against each other. Will the price of cattle go up or down?

Release time:

2022-06-21

Pig prices fluctuate on a daily basis, first falling continuously until three months ago, and now rebounding. However, there has been little movement in the bull price recently. It seems to be standing still. The transaction price is also high and low, but there is no new low or new high. Slaughter companies and cattle farmers compete against each other in secret. Recently, the price of cattle has remained unchanged, which does not mean that the price of cattle has stabilized. In other cases, slaughtering companies and cattle farmers are playing games behind the scenes. The people who sell cattle now are basically the cattle that were raised in the second half of last year. The price of calves has also risen. It can be said that their cattle raising costs are not low. In order to obtain greater benefits, they are naturally reluctant to sell cattle at low prices, so they want to raise the price of cattle. According to the principle that no one sells cattle, and when there is a shortage of cattle in the market, the price of cattle will rise. Many cattle farmers are unwilling to sell cattle and just want to wait for the price of cattle to rise.

But the slaughtering companies are reluctant. Now that the demand for beef has begun to recover, and the number of beef cattle is increasing, they want to lower the price of cattle in order to collect more beef. Because people are all panic, the price of cattle has been falling, and many cattle farmers will panic, and finally they will sell in panic. Once a cattle farmer starts to sell, the price of cattle will fall, and finally a chain reaction will occur. Finally, the slaughtering company will be able to receive more beef cattle.

The income of slaughtering companies mainly depends on the processing volume. The more beef cattle processing, not only will they create jobs, but also increase profits. For slaughtering companies, the price of cattle is not important. Anyway, their processing costs are the same. In the end, they all sell at a higher price. The cheaper the price of cattle, the more they sell, and the more profitable they are. Therefore, now cattle farmers are reluctant to sell and want to wait for the price of cattle to rise, while slaughtering companies want to lower the price of cattle, so that when the slaughter volume increases, the income will be higher.

The inflection point of the bull price is coming, and there is a high probability that it will go down. This year, many people have entered the industry to raise cattle. Whether they are novice or old cattle farmers, they are very concerned about the price of cattle. If you have to say that there is still a reason for the rise in cattle prices, it may be that the cost of raising cattle has risen, which has led to the rise in cattle prices. After all, calves are expensive this year, the price of feed has risen, and the cost of raising cattle has reached 13-14 yuan. It is impossible for cattle farmers to lose money without making money, so the cost of raising cattle is one of the reasons for the rise in cattle prices. However, this reason may not play a big role this year, because there is only one good news, and four or five bad news can be said, all from the perspective of supply and demand, it can be said that each one indicates this year. Bull prices can't go up, they can only go down.