Beef Buzz News
October Ice Storm Dramatically Impacted Cattle Markets Says OSU's Derrell PeelThu, 19 Nov 2020 08:23:40 CST
Just as it appeared the cattle markets were operating in a more seasonal fall pattern, Mother Nature threw a wicked curve ball in the form of that late October ice storm in the southern High Plains. Dr. Derrell Peel, OSU Extension livestock market economist said the storm was a game changer.
Cattle markets were drifting lower in October and then the ice storm changed everything, Peel said.
The storm closed auction markets but brought timely moisture for the wheat crop.
Since then weíve seen a sharp rebound in the markets the past couple of weeks, he said.
Itís great for cow/calf producers selling calves, Peel said, as he expects auction volumes to continue being strong through November into December.
The Oklahoma National Stockyards is a good example as they had large volumes with higher prices this week especially for lighter weight calves.
Stocker calves are being bought by producers anxious to take advantage of the wheat pasture and Peel said producers have had to continually change their budgets which have been all over the place.
If you look at the futures markets for next spring, they have also been volatile, Peel said.
Meanwhile, beef demand going into the last part of the year is raising some concerns, he said.
Wintertime we tend to focus more on food service and itís now a mixed bag, he said.
Ribeyes are very popular for the holidays and so far, they are holding their own, noted Peel.
However, tenderloins, exclusively a restaurant item, are running about 25 percent below a year ago, Peel said.
With additional Covid-19 concerns and further restaurant restrictions, Peel said we have some beef demand challenges moving forward.
Click on the LISTEN BAR below to hear more comments from Dr. Peel.
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