"It's Been a Long Time Coming" - Cattle Markets Beginning to Show Signs of SupportMon, 07 Nov 2016 11:44:38 CST
It has been a tough fall for the cattle market, regardless which segment you look at, says Dr. Derrell Peel, Oklahoma State University Extension livestock market economist. In a recent conversation, though, with Farm Director Ron Hays, he says he is finally beginning to see some stability in the markets.
“Finally, we’ve seen some support in cattle markets pretty much across the board,” Peel said. “We’ve seen feeder cattle prices tick up; fed cattle markets have recovered; boxed beef markets have recovered.”
This is good news, according to Dr. Peel, who says it has been especially odd, since fall is the time of the year the industry generally sees its largest run of calves.
“We normally look for some seasonal weakness in prices,” Peel said. “But I think this has been an unusual fall.”
Although the markets are starting from a lower point than what was expected, Dr. Peel says there is still some opportunities to be had.
“I think this market has had a very bearish psychology - a lot of fear, frankly,” Peel said. “It’s been very slow to develop and I think we’re going to see that now. So, we have a chance to see these markets maybe improve a little bit more, given what they’ve already done.”
Currently, Dr. Peel says he believes producers are beginning to respond to the market’s demand for heavier cattle, keeping calves out in the country longer before taking them to town. He says as time goes on into the spring, he expects to see more cattle this year grazing wheat pasture - a strategy he insists is the best bet for producers to make a profit, given the current situation in the wheat markets.
Listen to Dr. Derrell Peel talk more about the new-found support in the cattle markets 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.
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