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Agricultural News

Grilling Season is Upon Us - Beef Demand Expected to Climb as Markets Approach Seasonal Peaks

Tue, 26 Mar 2019 10:26:37 CDT

Grilling Season is Upon Us - Beef Demand Expected to Climb as Markets Approach Seasonal Peaks

The latest Cattle on Feed report based on March 1 data and released by the USDA this past week showed more placements of cattle than compared to this time last year. Interestingly, it indicates that many of those placements are lighter weight cattle than what is typical. Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel, in a conversation with Radio Oklahoma Ag Network Farm Director Ron Hays, remarked on what the information provided in this report means for producers and the beef industry as a whole. According to his analysis of the current situation, there is a sense of duality happening with so many lighter weight cattle moving to feedlots while at the same time a large amount of cattle remaining on wheat pasture across the Southern Plains. Peel attributes this division between the North and South in large part to the weather. Despite the regional differences that have developed though, Peel contends this is shaping up to be a “fairly normal spring” for the cattle market.

“I think in general we’re really anticipating a strong start here for spring forage, so there will probably be a little bit of demand here for some time to come… another week or two at least and that’s when we would expect to see our season peak between mid-March and the first week or two of April,” Peel said. “We’ll see the grilling seasonal patterns kick in and as we get into April, we’ll start to see those wholesale level prices come in.”

At the same time, Peel points out that the industry will also likely begin to enter into its seasonal peak for slaughter increases. As supplies grow so too should demand, Peel says. This pattern seems to continue to evolve currently as reflected in strong boxed beef business sustained partially by lighter carcass weights and cattle being traded at higher levels in the auction barns.

For more of Peel’s insights into this report and what it says about the current market situation in the beef industry, listen to his full conversation with Hays on today’s Beef Buzz - brought to you by the American Angus Association. America’s breed.

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.



For more of Peel's insights into the current market situation, listen to his full interview with Hays, below.
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