For Cow Calf Producers- A Great Time to Be in the Cattle Business- Derrell Peel Tells AllSat, 23 Aug 2014 20:03:12 CDT
For the cow calf end of the beef cattle industry, it's a great time to be in the business as long as you have been able to hang onto your cow herd through the years of drought. Cattle numbers are tight and prices here in 2014 have really responded with records being broken multiple times as the year has worn on. In our latest Beef Buzz, Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel says that the opportunity to make money in the beef cow calf sector has never been better- and that profitability is likely to be out there for the balance of 2014, all of 2015 and likely in 2016 as well.
Dr. Peel says that the normal seasonal pressure on calves and stockers that we see in the fall is probably not going to happen here this fall. In fact, Peel says that it is possible that we could see even higher calf prices from record levels happen yet this fall.
He believes that the strength in the cattle market we have seen in 2014 is the result of forces that have been building for quite some time. He sees little chance that there willbe much downside in markets. There will be some short term volitility in this market- and it's important that you have the ability to hold calves for a week or two longer if needbe in order to not get caught in any temporary weakness that will periodically happen.
Peel adds that the biggest challenge for many of our producers is simply having something to sell. "If you have it, it's going to sell pretty well."
The Beef Buzz is a regular feature heard on radio stations around the region 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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