Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   

Agricultural News


High-Quality Cattle Help Provide Consistency in Today's Wild Cattle Markets

Tue, 01 Dec 2015 17:25:54 CST

High-Quality Cattle Help Provide Consistency in Today's Wild Cattle Markets Volatility. Funds. Risk management. If you’ve heard cattle market commentary in the past few months, you’ve heard all of these….a lot. Kansas-based commodity broker Doug Deets, of Buchanan & Co., says the landscape is changing as rebuilding begins—noticeable gains in cowherd inventory will start to appear in 2016.


“Then, the multiplier effect kicks in,” Deets said. “You’ve got, you know, more cows, more calves hitting the ground, more beef production the following year, 18 months down the road. So, right now, though, we’re expanding a liquidating herd, so we’re just now making that switch from liquidation to expansion, and that’s why supplies have been so restricted this year. But beginning next year, you’ll gradually begin to see an increase in cattle supplies and beef supplies from up on the market. And it will exponentially increase every year after, as long as we continue in an expansion phase.”


That’s why index-fund investors have left the market. They see longterm lower prices. Commodity funds that lost money are looking for more lucrative ventures. And that’s why today’s cattle market presents unique challenges.


“What does a guy do?,” Deets said. “You know, if you’re in the business, you’ve still got to be in the business. And, it’s a difficult decision. I think you just basically have to stay with your plan. There’s not a real risk management opportunity right now. If you have to do something, you buy a minimum pricing strategy, like a long-put option, and leave the top side open to the market.”


Deets also says there is one constant that can help buffer some of the wild swings.


“If you handle quality cattle, and many of us do anymore, stay with a program,” Deets said. “That hasn’t changed. That’s been probably the most consistent thing through this whole process, is the demand for high-quality beef has held up extremely well. There are still premiums out there, you can still get them. Why anybody would veer from that is beyond me.”


This video news is provided by CAB and the American Angus Association. Visit www.CABpartners.com or www.angus.org for more information.





   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • United Soybean Board’s 2020 Investments Innovate Beyond the Bushel  Mon, 22 Jul 2019 07:47:56 CDT
  • USDA Awards Agricultural Trade Promotion Funding  Mon, 22 Jul 2019 07:41:32 CDT
  • Monday Preopening Market Update with Dave Lanning  Mon, 22 Jul 2019 07:25:44 CDT
  • Rural Broadband and GPS- Both Essential for Precision Ag on Today's Farm or Ranch- Both Under the Watchful Eye of Congressman Frank Lucas  Sun, 21 Jul 2019 19:33:36 CDT
  • Kansas State Explains The Old "Block" and Chain: How Farm Data Will Be Used on the Blockchain  Fri, 19 Jul 2019 17:41:03 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Friday, July 19, 2019  Fri, 19 Jul 2019 16:34:23 CDT
  • Friday Market Wrap-Up with Justin Lewis  Fri, 19 Jul 2019 15:35:43 CDT
  • Michael Hooper Selected as ODAFF Agriculture Investigative Services Chief Agent   Fri, 19 Jul 2019 15:32:41 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show AFR Insurance Stillwater Milling KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com


       
       
    © 2008-2019 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.