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Price movement due to seasonal and cyclic variations

All agricultural markets, livestock markets as susceptible to seasonal variation. Fresh milk prices fluctuate in the same way as food crop prices which are moving inversely with supply on the day season. Meat prices move in a slightly different manner with natural shocks. While food prices are likely to rise during bad years then crop production falls, meat prices will fall during the same years. Producers attempt to sale livestock because they cannot maintain their livestock for lack of feed or water. In due to the fall of demand reduced consumption. The perish ability of livestock during such a year causes decrease in supplies to be consumed more quickly than normal. The effect may be felt for years as producers attempt to rebuild their herds.

Cyclical price variation is not due to natural shocks, but it is based on the reactions of supply for changing market conditions. Because sustained increases in livestock production, in response to some increase in demand, may take some years to bring about equilibrium condition.