jallen wrote:Good thread, but I don't agree with calling this high artificial. It happened and the prices are real. Will they last, of course not. Trends are trends, prices will go up and down over time. Plenty influences can affect the market, none will last forever but it doesn't make them artificial.
I agree that it's not artificial. It's the result of increasing demand for a product combined with a decreasing supply. I also agree that it won't last forever. I don't know how far, how fast, our when prices will fall, but I'll be pleasantly astonished if they don't.
With that being said, I don't think the drop will be catastrophic for the people who are in the cattle business for the long haul. The ones who are looking at the record prices and jumping in with borrowed money, on the other hand, will probably be in trouble.