Cattle Market Expected to Stabilize in 2021 Dr. Derrell Peel Tells American Farm Bureau Virtual AudienceThu, 14 Jan 2021 16:59:38 CST
The cattle markets should be more stable in 2021, barring any major disruptions, according to Dr. Derrell Peel, OSU Extension livestock market economist.
It is traditional this time of year for Peel to provide a cattle market outlook for farmers and ranchers attending the annual American Farm Bureau convention.
Due to Covid-19 concerns the AFBF convention is being conducted virtually online and Peel was a featured speaker during the market outlook conference.
Peel noted early in the year it is hard to pick a definite trend due to a lack of data but pointed out the latest trade information from November showed strong beef exports late in 2020.
I think the trade picture will continue to be favorable in 2021, he said, barring any sort of new disruptions, he said.
A strong grain market could lead to higher feed prices would impact the cattle industry, Peel said.
Traditionally higher feed costs boost cost of gain at the feedlot level, he said.
Lower margins would be the result implying more pressure on demand inputs, Peel said.
In terms of the future herd dynamics, Peel doesn’t think higher feed prices will immediately change the dynamics much.
However, higher feed costs combined with a worsening drought could create a situation impacting herd numbers in 2021, Peel said.
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