Summer Doldrums to Blame for Market Prices Says Dr. Darrell PeelWed, 20 Jul 2016 12:42:45 CDT
The summer heat has a tendency to cause season-long epidemics of lethargy. The effects of these “doldrums” as Oklahoma State University Extension Livestock Marketing Specialist Dr. Darrell Peel calls it, can be felt by farmers, their cattle, even the markets. It is no secret the current activity, or lack thereof, in the marketplace has some in the industry a little nervous. Dr. Peel however says things may not be as bad as they appear.
“It’s not a real active market and it’s certainly a market that’s a little hard to define a trend,” Peel said.
He does acknowledge that the market does seem to have a current tendency for slightly weaker prices but says on the other hand, feedlots are in pretty good shape right now and look to be holding up fairly well.
“I think when it’s all said and done we may see slightly weaker prices here but probably not dramatically changing one way or the other at this point,” Peel said.
Dr. Peel says the tension is felt by more than just producers, including lenders too and others that use futures as a risk management tool. He asserts there are some underlying structural issues that will most likely continue until solutions become more apparent, but until then volatility will continue to be injected into the markets.
Listen to Dr. Darrell Peel talk more on how futures are impacting cattle prices during today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is 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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