Is Now the Time to Retain Ownership of Cattle at the Feedlot - Dr. Darrell Peel Has the FactsThu, 21 Jul 2016 15:18:53 CDT
Thanks to a volatile futures market right now, feeder and stocker markets are experiencing their own instability. OSU Extension Livestock Market Economist Dr. Darrell Peel understands the frustration being felt by producers, but assures that things will get better.
“It’s midsummer so it’s a hard time to put together a stronger market in general for cattle,” Peel said. “We’re just kind of marking time here. Numbers are slightly bigger and their going to continue to get bigger, so there will be a possibility for erosion of these prices as an underlying trend for many months ahead.”
For producers worried about an influx of cattle hitting the market coming into the fall, Dr. Peel says that while that can occasionally happen, causing a supply effect that drops prices, he believes conditions are fair and numbers aren’t suggesting that will occur.
Despite all the trouble, Dr. Peel adds that the market may be presenting an opportunity for producers sending cattle to feedlots. With feed prices down, producers should think about cost of gain factors and consider possibly retaining ownership of their cattle at the feedlot. Dr. Peel says in terms of what producers look at, the circumstances for retaining ownership are better than they have been for quite some time.
Listen to Dr. Darrell Peel talk more on feeder/stocker markets 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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