Ag Outlook 12-2-2020

Last week government economists decided when it is all said and done grocery food prices will have increased by three to four percent for the year, largely driven by the pandemic. Now comes news cattle feed is coming in higher. During the year ahead producers are looking at a 12 to even 20 percent increase. As to how this will affect the industry, livestock analyst Shayle Shagum says there may be increased incentives to keep cattle on grass longer changing the weights of those animals and timing of placement in feedlots. This could result in downside pressure on prices.