I still have to laugh at how many “economists” refuse to use what was learned in Econ 101 back at university. It truly is simplicity itself: Market price is the point where the quantity demand equals quantities available creating a market equilibrium. Therefore, if we want to understand the real relationship between supply and demand – and I don’t care if you subtract, divide, or use some other math function – all we have to do is study market price.Okay, since the subject has come up, let’s once again talk ...

Group 1: Boxed Beef Market Trends - The US boxed beef prices have been declining significantly since the president's announcement to lower beef prices, with choice prices dropping from a record high of $416.01 to $381.39 and select prices from $390.00 to $362.09 [1] - The USDA reported daily boxed beef prices, which some speculate may be intentionally reported lower despite actual market conditions [5] Group 2: Cattle Futures Market Dynamics - Cash feeder indexes have shown an increase, with back-month feeders closing $9.25 higher, leading to expanded daily limits for futures [2] - The Live Cattle Cash Index has seen a rise from $92.00 in July 2020 to a recent high of $242.00, although it has slipped to $240.00 recently [7] - The National Feeder Cattle Index increased from $114.23 to $367.03, but has recently decreased to $358.78 [7] Group 3: Supply and Demand Factors - The US cattle supply is not in an expansion phase, leading to a situation where demand continues to outpace available supplies, indicating a potential equilibrium price issue [8] - The investment industry has recognized changes in supply and demand, with noncommercial interests increasing their long futures positions from 67,700 contracts in June 2020 to 202,150 contracts by January [9] Group 4: Market Sentiment and Future Outlook - Recent reports indicate that funds have reduced their net-long futures position to 101,726 contracts, suggesting a potential loss of interest from long-term investors in the cattle market [10] - There is speculation that long-term investors may be considering reallocating funds to other markets, such as corn, based on favorable longer-term fundamentals [4][10]