The U.S. cattle herd is at multi-decade lows and wholesale beef prices are at record levels. Rebuilding cattle herds takes years, locking in supply constraints just as seasonal summer BBQ demand arrives. Go long live cattle futures as a structural inflation play driven by sticky input costs and tight supply. A hard economic recession causing severe demand destruction, or an unexpected collapse in energy and feed prices.
The U.S. cattle herd is at multi-decade lows and wholesale beef prices are at record levels. Rebuilding cattle herds takes years, locking in supply constraints just as seasonal summer BBQ demand arrives. Go long live cattle futures as a structural inflation play driven by sticky input costs and tight supply. A hard economic recession causing severe demand destruction, or an unexpected collapse in energy and feed prices.