The cattle price roller coaster of 2006

US - Yet another interesting year for cattle prices is behind us. It seems like each year the September to December time period usually spawns an unexpected event that causes dramatic swings in prices.
calendar icon 1 January 2007
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In 2001, it was the tragic events of Sept. 11 that caused prices to plummet. Just as prices were recovering in October 2002, a strike by West Coast dock workers slowed exports and depressed prices again.

Most cattle producers remember December 2003 because it brought the dreaded discovery of Bovine Spongiform Encephalopathy to the U.S. Continued drought in the western cattle-producing regions in 2004 caused beef cow herd liquidation for the eighth consecutive year, four years longer than normal.

In the fall of 2005, a larger than expected corn crop materialized. This second largest ever corn crop caused corn prices to decline more than 60 cents per bushel and feeder cattle prices increased contra-seasonally to record high levels.

Source: Farm & Ranch Guide
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