So What’s the New Normal?
Some may say what is normal, period? An average can be the mean of two extremes; I guess put another way it translates to volatility. The new normal in the feed and livestock business would probably be defined as higher costs/prices and ever increased volatility or price swings. This has definitely been the case in the past 4-5 years and one could write volumes on the reasons why; some are short term causes (drought) and others long term (market demand driven, political, etc...). These higher costs and values are basically the upward shift into a new level we see today and are likely here to stay. This volatility can create opportunity but can also pose great danger. Just ask anyone in the grain trading business.