Agricultural News
Beef Demand May Have Slowed Down Recently, But Not to Worry It's Still Going Strong
Thu, 22 Sep 2016 12:39:36 CDT
Although weekly beef production has slowed some coming off the Labor Day holiday weekend, OSU Extension Livestock Market Economist Dr. Derrell Peel believes, in the overall beef demand picture - we're still doing just fine. Farm Director Ron Hays asks Peel in a recent conversation, what should producers expect to see in the beef market moving forward?
"I think it's a little hard to read, frankly, in this post-Labor Day period," Peel said. "One of the things we're going to see going forward, that I think we're beginning to see, is less of an increase year over year."
Peel says the market is progressing as expected right now, recovering some from last year's tight supplies, high prices and decreased exports. International trade though, he says, will certainly play a role in keeping profitability in place for the US cattle industry.
"It does look like that's happening; it's kind of a mixed bag when you look at specific countries and specific markets," Peel said. "In general its happening, I think it's pretty robust and will continue to go forward with improvement on beef exports."
Peel attributes these recent market projections to what he calls a "supply side phenomenon" that is having real effects relative to demand. But the question remains, is global beef demand weak?
"Obviously a strong dollar and the exchange rate issue continues to be a bit of a headwind," Peel said. "At the same time, I think there's pretty good demand on a global basis for US beef."
Listen to Dr. Derrell Peel share his projections for US beef demand at home and globally with Farm Director Ron Hays on 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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