Record high prices everywhere; what could possibly go wrong?

Beef producers are experiencing history almost daily. Amazing prices most never dreamed possible. Record high cash steer prices, record high feeder cattle prices, record high wholesale beef prices and record high retail beef prices. Beef packers have been forced to compete in an effort to preserve market share. This is all happening presumably before large scale heifer retention has begun. In other words, the tightest supply of fat cattle still lies ahead. So, what could go wrong? Most beef producers are so pumped up by the record cash and huge profits on close outs, it’s created a massive surge in demand for replacements. Most expect this situation to remain intact for at least a couple more years if not longer. But is this realistic?

Throwing a wet blanket on a red hot market is not popular. I’m not trying to win a popularity contest, I’m trying to warn producers to be cautious, especially when buying replacements. The bullets below outline my concerns.