Wilson Says Feedlots Remain Cautiously OptimisticTue, 04 Nov 2014 11:37:51 CST
The year of 2014 has proven to be a year where feedlots have made money. Looking down the road the outlook is a lot less certain. Texas Cattle Feeders Association Chief Executive Officer and President Ross Wilson about the mood of the industry. He said the mood of the cattle industry in general is optimistic.
"It's good in the cattle feeding business these days, we have had a good past year but there is also a lot of apprehension, because as of all your listeners know, volatility has just been incredible," Wilson said. "We're at historically high prices in all segments, calves, stockers, feeders. Fed cattle traded for a record this week at $1.70 a pound or $170 a hundred weight, so that's good. A lot of it as you know is supply driven and that is the flip side of that equation is that we're needing more numbers, we're needing more cows, calves, feeders going into the feedyards and we will get there as you know people are beginning to retain heifers, not as quickly as we would like to see in this part of the world."
Radio Oklahoma Network Farm Director Ron Hays interviewed Wilson at the recent TCFA Annual Convention held last week in Oklahoma City. Click on the LISTEN BAR below to listen to today's Beef Buzz feature.
In the three state TCFA membership region of Oklahoma, Texas and New Mexico, drought continues to weigh heavily on the minds of cattle producers. Wilson said if the region can continue to receive moisture so pasture conditions can hold along with grow winter wheat pasture. He said producers have a positive outlook but remain apprehensive.
The apprehension can be traced back to the record prices and how long these prices will hold for a sustain period, but also the amount of capital it takes to keep the cattle industry rolling. Wilson said one positive aspect has been the plunge of feed grain prices with the nation predicted to produce corn and soybean crop. Prices have not corrected as much as what some might think with the competition for railroad cars. Wilson said there have been struggles with Union Pacific and Burlington Northern Santa Fe railroads in managing the rail volume in moving oil, coal, containers and grain. He said they have meet with leaders of BNSF.
"They are very receptive to our concerns but it takes a while to turn a railroad around, so that has taken a little bit of the edge off of the price decline cause of the basis adjustment we are seeing because of railroad movement issues." Wilson said.
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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