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Beef Buzz News


OSU's Dr. Derrell Peel Encourages Producers to Make a Drought Plan Now to Get You Through to Next Year

Fri, 07 May 2021 08:25:49 CDT

OSU's Dr. Derrell Peel Encourages Producers to Make a Drought Plan Now to Get You Through to Next Year With the prospects of drought looming ever closer to Oklahoma, Dr. Derrell Peel, OSU Extension livestock market economist, is encouraging cattle producers to have a plan in place now if there is a reduction in forage supplies.

The latest U.S. Drought Monitor map continues to show much of the western and southwestern United States experiencing extreme and exceptional drought.

The situation in Oklahoma has improved slightly in recent weeks but the dark shades of drought are banging on the neighbor’s door.

Drought conditions have continued to get worse as the drought is expanding in some areas and cutting into our growing season, Peel said.

If we lose May and June it takes a huge chunk out of our total forage availability for the next year, Peel said.

Producers should make a plan now that covers most of the next year, not just the next month, Peel said.

Colorado producers have reduced cow herds 14 percent because of the on-going drought in that state and Peel believes we could see more herd liquidations.

The weekly slaughter data for beef cows would suggest it’s increased in the last couple of weeks, he said.

We’re hearing stories out of places like North Dakota where we are seeing movement of cattle, he added.

From a broader market perspective, we could see overall price impacts, Peel said.

With that in mind, the OSU economist said thee may be some rough patches in the market this summer.

I think we have got some real pressure with burdensome fed cattle supplies, Peel said.

Obviously, we are watching this feed market and the impact on feeder cattle market, Peel said.

I think they are going to struggle a little bit with the current challenges we have before we improve, Peel said.

Click on the LISTEN BAR below to hear more comments from Dr. Peel.

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.


   
   

Ron Hays Beef Buzzes With Derrell Peel
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