Agricultural News
Unexpected Strong Demand Keeping Pace with Growing Supply Setting Up Sideways Trend for 2017
Mon, 27 Mar 2017 12:26:02 CDT
During the National Cattlemen's Beef Association and Cattle Industry Convention earlier this year, the CattleFax organization predicted that the cattle and beef markets had hit their highs for the year. Since then though, the markets have continued to climb and according to Oklahoma State University Livestock Market Economist Dr. Derrell Peel, this came as quite the surprise to market watchers like himself.
He told Radio Oklahoma Ag Network Farm Director Ron Hays, "We were expecting some seasonal strength in cattle markets and beef markets this spring. We've certainly seen that and really a little more than was expected."
Peel has observed that fed cattle prices have jumped rather dramatically since settling in a low in February. He believes this to be indicative of the predicted seasonal strength, but it indeed has surpassed expectations. As the industry continues to grow its supplies, demand both domestically and internationally seem to be keeping pace. Peel says this trend looks as though it may continue throughout the end of the year, peaking off some over the summer.
"That generally has a lot of folks worried about the supply impacts," he said. "But what I think we're seeing here is that the demand is growing to keep up with that and that's keeping 2017 really set up to be kind of a sideways year."
Listen to Dr. Derrell Peel's rationale of the unexpected strength in the cattle and beef markets this year with 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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