Robb Offers Favorable Outlook for Cattle Producers in 2015Thu, 08 Jan 2015 15:35:03 CST
The head of the Livestock Marketing Information Center is optimistic on the outlook for cattle prices in 2015, but not without competition from less expensive competing meats. LMIC Executive Director Jim Robb said pork and poultry demand will put pressure on how much gain the beef and cattle markets have this year.
"I think it really takes us to not to skyrocketing prices that we had in 2014, I don't think it really takes away from prices levels because fundamentally even though we will have pretty good beef production in 2015," Robb said. "We have it down one percent year to year in terms of beef output in 2015."
The supply side remains quite tight, so demand will be key. Robb said these competing meats are part of the beef demand component. The state of the domestic economy will have a bigger impact this next year. Robb said right now the US economy is growing and leading the world. The U.S. government announced in late December that they raised the third quarter Gross Domestic Product (GDP) to a five percent year over gain. That is the largest gain since before the recession.
Radio Oklahoma Network Farm Director Ron Hays featured Robb on the Beef Buzz feature. Click or tap on the LISTEN BAR below to listen to today's Beef Buzz.
Looking at fed cattle side, Robb said he is expecting modest year-to-year price increases. He looks for some slight increases for the first three quarters of 2015. By the fourth quarter he anticipates year-to-year decreases for fed cattle.
As far as feeder calf prices, it's a little bit touchier. Robb said corn prices will quickly play in the matrix into feeder cattle prices in 2015. Corn prices started moving higher in late 2014, Robb will watching to see if corn prices will moderate as farmers start to sell some of the stock-piled corn. In looking at feeder cattle and calf prices overall, Robb expects prices will be above a year ago for the first three quarters of the year. With the high cattle prices in the fourth quarter, he said it will be difficult to match those levels until the US produces a very large corn crop that would lower corn prices.
Overall Rob it is still a great time to be in the cattle business. For 2015 he said it will be a difficult time to make money for cattle feeders, but still a very good year for cow-calf operations.
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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