Do You Hold Back Your Heifers and Rebuild- Or Do You Take the Money and Run?Fri, 28 Jan 2011 6:41:28 CST
Feeder Cattle Prices made a huge jump in the early days of 2011- and while those gains have been trimmed some this week, OSU Extension Livestock Market Economist Dr. Derrell Peel says this is not a bubble- there is something based on fundamentals that is going on.
Peel adds that we have a real hole in the number of cattle that we have right now in our US cattle herd- and that the higher prices we are seeing for stockers and yearlings is there to try to convince cattle producers that the profit potential for the beef cattle market is such that they need to hold back heifers and build the cattle herd in order to produce more beef in the years to come. The struggle for many producers is- do you take the high prices with a nice profit right now- or do you hold back those females in anticipation that you will have an expanded cattle herd and more profit opportunities in a couple of years when those heifers start dropping calves?
We continue our conversation Peel about these topics on today's Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the state on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the listen bar below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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