Cattle Market Returns to Triple Digit Land with Tight Supplies and a Splash of Demand Driving Prices HigherMon, 23 Aug 2010 5:43:39 CDT
Cattle prices raced higher this past week, with feedlots taking bids of $100 per hundred- and selling deep into their showlists as a result. At the same time, calf and yearling prices are also substantially higher than at this time in 2009- and OSU Extension Livestock Market Economist Dr. Derrell Peel tells us that the tightness of supplies will likely keep prices very strong even into normal seasonal weakness in the fall for the animals out on the ranch or coming off summer pasture.
Just a week earlier when we talked with Peel who spoke to the Southern Plains Beef Symposium, he speculated that cash cattle prices could get into the upper 90s in the latter part of the year- but this past weekend, as he talked with producers at the Wheatland Stocker Conference- he was looking at that forecast already more than fulfilled- and we haven't hit Labor Day yet.
Dr. Peel pointed out that Labor Day probably had something to do with the price jump as packers were moving product through the pipeline that would hit the stores for Labor Day featuring in the next couple of weeks. Add in good export demand and the tight supplies detailed in the latest cattle on feed report- and you have the price explosion of last Thursday when we reached the hundred dollar mark for the second time this year.
We discuss all of these market factors with Derrell Peel on today's Beef Buzz.
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