Cattle Market Softening

The North American Cattle Market is losing some of its upward momentum.

Market Analyst Jerry Klassen says demand rationing at the consumer level is putting pressure on prices throughout the whole supply chain, and feedlot owners are cutting back.

"We're still seeing the cow/calf operator hold back on heifers and expand the herds, but the feedlot operator is backing away from the market," Klassen said. "That's why we've seen some volatile price action in the feeder market after Christmas, and now it seems like we are starting to take the edge off, and I wouldn't be surprised if the market starts to soften a little bit more into the summer months."

Klassen notes prices are still at near-historical high levels, after a two-year rally in feeder cattle prices, and adds the market is likely defining its upward limit.