As Summer Doldrums Loom, Producers Encouraged to Stay the Course for Fourth Quarter ReboundWed, 30 May 2018 10:26:59 CDT
Just after the USDA released its latest Cattle on Feed report this past week, Radio Oklahoma Ag Network Associate Farm Director Carson Horn had the chance to speak with Jim Robb of the Livestock Marketing Information Center about some of the different environmental and economic factors currently influencing the beef markets - including the impact drought has had.
“This report definitely shows we placed cattle early, especially out of the Southern Plains, because of drought,” he said. “As we look ahead from this point forward, the drought will start to impact when these calves that are born in 2018 are weaned and what we do with our summer grazing program. It can continue to influence the feedlot placement much like they have in recent months, but we’ll have to wait and see.”
Robb also addressed the recent fall off in cattle prices that have been observed, especially in respect to finished cattle. While the decline has been fairly strong over the last couple of weeks, he says most of that adjustment was well anticipated - however, he admits it may have come at a faster pace than what was expected. This has created an incentive to market cattle early. Even so, Robb says the market is shaping up as anticipated, but cautions that the summer lows are still ahead in June and July in terms of fed cattle prices. Calf and yearling prices he expects, too, have a little ratcheting down left to do. He says much of how things play out will depend on the weather and how favorably Mother Nature decides to treat us. That said, Robb believes for the most part the industry is well positioned to take on whatever challenges may arise during the balance of this year.
“We need to continue to market cattle even though prices will erode here over the next several weeks. If we continue to do that - we set ourselves up for a nice rebound of fed cattle prices in or by the fourth quarter of 2018,” he said. “So, we need to keep doing what we’re doing on the marketing side and hope for strong movement of beef through the grocery stores and the US economy seems primed to do that.”
Listen to Robb’s full analysis of the current beef market and its influences, with Radio Oklahoma Ag Network Farm Director 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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