Derrell Peel Takes a Close Look at the Big Picture of Oklahoma's Beef Market Opportunities This FallMon, 15 Oct 2018 15:13:41 CDT
As we settle into the fall season, beef producers in Oklahoma are starting to get serious about their options and which direction they want to take their businesses this year. One strategy for stockers is of course to graze out wheat pasture which is establishing nicely across the state in most areas. However, each sector of the industry is different and profit potential will likewise be adjusted according to the differences in each operation’s management. Radio Oklahoma Ag Network Farm Director Ron Hays reached out to Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel to get his analysis of the cattle industry and where producers can expect to find the most opportunity this year.
“You look at the different sectors, obviously it’s a complex industry,” Peel said. “Cow/calf producers, I think there’s a modest opportunity for profits. There’s wide variation in the cost structure across those producers. But, the most efficient producers and the best cost managers I think clearly are profitable at these price levels.
“Stockers is much more of a short-term margin thing- the budgets have actually looked fairly attractive this fall for the most part even though we have bid up prices and taken some of that out in the last couple of weeks. And feedlots have struggled a bit at times, although we’ve seen a little bit of recovery in fed cattle prices. So, fed margins look a little better as well this fall.”
Peel says strong wholesale and retail beef prices have maintained in recent weeks as well which have limited packer margins some but overall still remain favorable to stakeholders. However, Peel says the wet, sloppy weather that has occurred recently is starting to catch up to us- which he expects will manifest its overall impact on the market as the seasonal beef cycle progresses.
“We’re probably not going to see additional increases - the seasonal pressure will build as we go through October here into early November,” he remarked. “So, we’ll hold these prices probably more steady then anything, perhaps even a little lower.”
Listen to Peel’s full analysis of fall beef market patterns and where the profit potential exists this year, 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.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News