Market Watcher Derrell Peel Reviews this Fall Run of Calves as We Close Out 2018 and Look to '19Tue, 18 Dec 2018 13:19:38 CST
It has been a strange year to say the least, according to Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel referring to the cattle market here in Oklahoma and across the Southern Plains. In a recent conversation reflecting on this year with Radio Oklahoma Ag Network Farm Director Ron Hays, he discussed that notion and the factors that contributed to this viewpoint.
“The overall theme is about what you would expect. It’s up about five percent from a year ago,” Peel said, citing cattle market trends that he has observed this past fall. “But, what’s been interesting is the week to week variation in that. We didn’t get the normal peaks and auction volume that happens typically before Thanksgiving.”
Prior to that period in October, we did get some large volumes he says, but then wet, sloppy weather caused the marketing of cattle to slow down. However, since that time, Peel notes that markets picked up the pace and more or less caught up to where they should have been. A good illustration of the market dynamic that has been seen can be shown just over the past couple weeks. One week ago, the Oklahoma National Stockyards reported just 3,900 head sold. This week, their reported total was nearly triple that at approximately 9,000 head sold. Peel says that bodes well for the industry, comparing the activity to that of feedlots in being current with its inventory - attempting to explain that the markets have been able to get through the typical fall run of cattle despite the delays caused by the wet weather. He adds, that while the wetness bogged things down a bit, they were actually beneficial in another way - helping to establish ample wheat pastures across the plains which have in turn fostered a promising environment for stockers who have probably bought more calves than they had originally intended and later than intended as well to take advantage of the available pasture.
“So, there was lots of demand that was pushed off kind of a bit later even though we’ve had these big volumes, particularly since Thanksgiving,” he said. “We’ve continued to see this market hold pretty strong though that time period. So, I think we’re in pretty good shape going forward into this next year.”
Listen to Peel and Hays discuss the current market situation here at the close of 2018 and his expectations for the coming 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.
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