# Kay’s Korner: Supply and demand determines prices | Western Livestock Journal

> Steve Kay's column notes that U.S. cattle prices have held in a $118-120/cwt range for two months while packer margins have diverged from historical patterns. He recalls how the 2010-2012 drought shrank the herd and led to plant closures and record cattle prices in 2014. He argues that supply and demand determine prices.

- Date: 2021-06-04 · published 2021-06-04T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/46532-kay-s-korner-supply-and-demand-determines-prices-western-livestock-journal
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md)

## Why it matters

Packer margin pressure and steady cattle prices shape feedlot placements and the derived demand for feed, so buyers should watch cattle supply.

## Read by commodity

- LCATTLE: neutral

## Sources

- wlj.net: https://www.wlj.net/kays-korner-supply-and-demand-determines-prices/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.