Agricultural News
Market Watcher Derrell Peel Says USDA On Feed Report Suggests Spring Weather Market Brewing
Mon, 11 Mar 2019 12:23:06 CDT
Catching us up from the government shutdown at the beginning of the year that caused many delays in USDA reporting, the latest Cattle on Feed numbers from the United States Department of Agriculture was issued this past Friday afternoon, giving the market a snapshot of the industry as it looked as of February 1, 2019. On feed numbers came in at 11.7 million head with the inventory slightly above the Feb. 1, 2018 USDA report. Placements were 5 percent below 2018 and marketings of fed cattle during January were reported at 3 percent above the same month in 2018. According to Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel, based on the pre-report estimates, the numbers in this report were fairly well-anticipated.
"There is no big surprises in these numbers. We're still catching up from being delayed, so there's an element here of 'old news,' Peel remarked. "I don't anticipate any major market reaction to this. This report just kind of continues with what we know already."
To that point, given what we do know, Peel expects to see prices in the fed market strengthen in the next several weeks. He has concluded that based on expected seasonal patterns that typically boost prices during this period, plus historical price increases that have occurred after winter weather events like we have seen this year. Those factors combined with an already strong beef demand profile are enough in Peel's mind to support a price rally in the short term.
"Now it's not always easy to measure that impact, but I think the effects will be there for quite some time," Peel said. "So, we expect this fed cattle market to be pretty strong at least here for the next few weeks."
Listen to Peel's complete analysis of USDA's latest Cattle on Feed report with Radio Oklahoma Ag Network Farm Director Ron 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.
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