
Agricultural News
Cattle on Feed Report Shows Industry in Good Shape With Opportunities Arising
Tue, 23 Aug 2016 12:10:48 CDT
During the latest Beef Buzz, Farm Director Ron Hays spoke to Extension Livestock Market Economist Dr. Derrell Peel about where we are in the cattle business in avoiding some of the same problems the industry experienced last year with dramatic carcass weight increases that ultimately led to drop-offs in cattle prices. According to Dr. Peel, he says we are doing just fine based on what the numbers are suggesting in the latest USDA Cattle on Feed report.
"In general you would say that this suggests we are still being pretty current," Peel said. "The numbers we have thus far suggest that and I think the Cattle on Feed report would suggest that at this point and time we are still staying very current and we're in pretty good shape."
Although Peel acknowledges that the industry will be dealing with an increase in cattle numbers this year, citing that ranchers added a million head to the US herd last year - meaning there will be an even bigger 2016 calf crop - he actually is more comfortable with the feedlot situation. He says he is confident because of the fact that feedlots are staying consistently current describing the segment as "leaner and meaner" compared to the last two or three years.
Going forward, Dr. Peel suggests that strategies for cow-calf producers for the rest of the year should not need to change all that much. Though he says there is opportunity for cow-calf and stocker producers to consider retaining ownership at the feedlot. He says markets appear to be offering incentive for producers to put weight on mid-range cattle for them.
"Feedlots don't seem to be real interested in owning lightweight cattle right now," Peel said. "They're willing to pay stocker producers to put that weight on for them."
Listen to Dr. Derrell Peel's rationale on his strategy for producers this fall with Farm Director Ron Hays 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.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
