Reduced supplies then drive prices up and encourage producers to build numbers again, beginning a new cycle. After low prices from 1994 to 1996, cattle numbers have decreased in 1997 and prices have rebounded. Forrest said he anticipates herds will begin to rebuild in 1998. The degree of change in prices may become less dramatic in future cycles. Even though market swings appear to be less severe, cattle producers continue to deal with the unpredictability of the market.
Producers can only take the signals the market gives and try to act in their own best interest.
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