Agricultural News
Easing Meat Market Competition Presents Opportunities of Potential Profit Taking for Beef Producers
Mon, 23 Jan 2017 12:30:07 CST
For beef producers, this may be a year of potential profitability, so Radio Oklahoma Ag Network Farm Director Ron Hays has been told by Jim Robb of the Livestock Marketing Information Center.
"I think we're very close to black ink. We've had a very solid rally in the cash live cattle market," Robb remarked, adding that, "Calves and yearlings have followed along suit."
That rally, which has sustained since early December, has been very beneficial for the industry, says Robb. With prices in both feeder cattle and feed commodities down, he expects to see a consistent flow of "black ink" into the cattle feeding sector as early as February. He says modest year-over-year declines in prices will still likely occur in 2017 and into 2018, but assures barring any unforeseen complications, the markets should not experience any drops like those that happened last year as pressure eases from competing meats this year.
"A little bit of good news, a little bit of bad news," Robb reassures. "In terms of competing meats, we always focus on the level and the percent change. The levels are going to be larger but the rate of growth in those competing meats is moderating some from a beef industry standpoint."
Listen to Hays and Robb discuss the potential for profitability in beef markets this year more in depth, 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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