If Cattle is Your Business, Then You Know - Business is Good! Economist Derrell Peel Explains WhyTue, 27 Jun 2017 12:10:40 CDT
This year, the US beef business started off strong with good demand, and thus far has managed to sustain that momentum, beyond expectations, even surviving the traditional seasonal peaks. And those in the cattle business are quite happy about this continuing trend, something Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel told Ron Hays, Radio Oklahoma Ag Network farm director, almost never happens.
“That’s very rare in this industry with all the dynamics that are typical of this industry, for everybody to be making money at the same time,” Peel said. “But, it really is a testament to what happens when you have good demand pulling the whole system along.”
Peel has observed market signals and indicators from all different segments of the market recently that point to strong consumer demand, from boxed beef values to retail prices and even spill over demand for pork and poultry, seemingly immune to the effects of the large, growing supply of those meats. But it is the influence of recent trade activity that Peel credits as the lynchpin to this sustained demand.
“Really trade in general, not just exports, but the combination of exports and imports are an important part of this as we go forward,” he said. “Not only in terms of the total tonnage of products that moves in those trade markets - but also the sort of balancing of products that goes on.”
Listen to Peel and Hays discuss the strength of beef demand in today’s market, 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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