When prices drop this low, exports usually increase as other countries take advantage of a bargain. But exports have been disappointing, Gerloff said. U.S. acreage has been increasing the past five years, and yields have been good. Right now the world has an abundant supply of grains and oilseeds. Prices may be low now, but the economist is optimistic about the future.
Prices tend to move in cycles.
Right now we're in the low part of the price range. Prices eventually will rise again. Up Prices at the meat counter may rise as cattle producers withhold cattle from market to increase the size of their beef cattle herds. The indications came in the cattle inventory report released on Jan. 26 by the national and Tennessee Agricultural Statistics services, said Emmit Rawls, a marketing economist with The University of Tennessee's Institute of Agriculture. The number of beef heifers retained to produce calves has risen 2 percent from a year ago, the first increase since 1995, he said.