Agricultural News
Reviewing 2015 and Previewing 2016- Talking Cattle Markets With Dr. Derrell Peel
Thu, 17 Dec 2015 06:12:27 CSTEarlier this week, OSU Livestock Market Economist Dr. Derrell Peel wrote in his weekly analysis that 2015 has turned out to be a year of extremes- ""The contrast between the beginning and end of 2015 is stark. It has been a year of transition as the markets turned the corner from a long run of up-trending prices to the reality that growing cattle inventories and increasing beef production imply lower prices in the future. The idea that things will change is not a surprise but how that change will happen is most always impossible to predict. Cattle and beef market fundamentals have not changed nearly as dramatically as the recent volatility and freefalling prices would suggest; but the process of changing market psychology from bullish to bearish is emotional, often overly-dramatic and usually painful. The second half of 2015 has been agonizing and frustrating for nearly everyone involved and the contrast between the annual averages and the end-of-year conditions are marked. Cattle prices at the end of the year are sharply lower, although 2015 will have the highest average annual prices ever. Beef production in 2015 will be down another 2-2.5 percent year over year, but production in the fourth quarter will be up an estimated 1.5-2.0 percent year over year. The annual comparisons of 2015 and 2016 will show sharp differences; with average cattle prices lower and beef production increasing year over year. However, most of the adjustments are already in place at the end of 2015 and current conditions provide the starting point for 2016."
On Wednesday- Radio Oklahoma Ag Network Farm Director Ron Hays sat down in Dr. Peel's office in Stillwater on the campus of Oklahoma State University and they talked about what a year it has been in 2015- and what the current market is setting us up for in 2016. You can hear that conversation by clicking on the LISTEN BAR below.
Ron Hays talks with Dr. Derrell Peel of OSU about current cattle market conditions.
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