Cattle Market Rattled By Recession Risks As Cash-Strapped Consumers Pull Back

Cattle Market Rattled By Recession Risks As Cash-Strapped Consumers Pull Back:

Is a meat recession coming?

The dismal US jobs report has ignited recession fears, with some major Wall Street banks forecasting at least three 25bps interest rate cuts this year, with the first one starting in September. Recessions typically reduce household incomes and alter diets.

One major issue with this consumer downturn is that households have already been financially crushed by elevated inflation and high interest rates over the last few years. A weakening labor market and a downshifting economy are just icing on the cake as the consumer has depleted personal savings and maxed out credit cards.

As previously noted, the United States Department of Agriculture recently reported beef prices at the supermarket reached a record high of $5.472 a pound in June. This one-way ticket up in prices has been primarily based on a shrinking US cattle herd to the smallest size in 73 years.

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