Cattle Market Success in 2017 "Bodes Well" for Next Few Years as Industry Faces More ProductionTue, 09 Jan 2018 11:56:32 CST
Jim Robb is executive director of the Livestock Marketing Information Center based in Denver, where he works with land-grant universities across the country providing market analysis for both the beef and pork industries. In a recent conversation with Radio Oklahoma Ag Network Farm Director Ron Hays, he remarked on the surprising resilience of cattle prices seen during the 2017 marketing year, despite what most would have considered a daunting situation in the beef industry.
“We produced a record amount of total meat and poultry in the year and we did that through the marketplace and that really bodes well as we look ahead to the next couple years,” Robb said. “Even though exports came in better than we thought they’d be, it was this margin adjustment that really reflected this meat demand component.”
Robb commended cattle feeders commenting on feedlots’ attention and response to the market’s economic incentives that drove demand throughout the beef supply chain and created profitability in the feeder and packer sectors. Furthermore, he says cattle feeders took advantage of these market signals, “but certainly people didn’t take it too far.” Feeders became willing sellers in 2017 and due to their orchestration of timely transactions, dressed weights actually came down as a result throughout the year up until the last weeks of December.
“That wasn’t because of winter weather. That was because the marketing system pulled cattle through the system, and that’s a very important distinction,” he said. “Often in the beef business and the cattle business, we’re trying to push animals into the marketplace and hoping prices hold together. That really underpinned lower weights aggressive marketings and the environment we ended up in the fed market and hence the calf and yearling market.”
Listen to Robb and Hays continue their discussion over the unexpected strength in cattle markets during 2017, 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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