Beef Buzz News
Broadening and Deepening 2012 Drought is Taking its Toll on Cattle Markets
Tue, 17 Jul 2012 16:11:06 CDT
Jim Robb of the LMIC talks about the 2012 drought.
The drought of 2011 had a lot of impact on the cattle industry in Oklahoma, New Mexico and Texas. The 2012 drought is broader and is having its impact on the cattle industry as well says Jim Robb, executive director of the Livestock Market Information Center in Denver, Colorado.
“This is a drought that is very broad-based and it’s really obviously impacting the corn market and pasture and range conditions to a much broader scope than what happened in last year’s drought.
“So, it’s a more difficult drought impact to figure out than a year ago, but is certainly especially pressuring calf prices. We actually raised our fed cattle prices forecast slightly, but still that industry suffers deep in the red ink.”
The deepening drought threatening the corn crop in the Midwest has sent feed prices skyrocketing and that is pressuring segments of the cattle market, Robb says.
“I think especially on the calf and yearling side the corn crop worries are the dominant factor, and then combining in with pasture and range. It’s kind of the worst-case scenario. You have a declining corn crop and no ability to hold the animals on pasture to try to get through the situation. So, those two clash together and kind of combine the negatives.
“I think on the fed-cattle side the corn crop really hasn’t been a big impact in terms of prices, but we’re certainly seeing consumer demand… very hot weather, et cetera, mid month seem to have dampened consumer interest in beef and other meat products. The summer heat, I think, has had some impact then from that demand-side perspective and that was the large driver behind the softening wholesale beef market this last week.”
As the heat increases and the summer wears on in the Southern Plains, more and more cattle are being pulled off pastures. More young animals are being liquidated. This is happening less so across Oklahoma this year, but is being seen in Missouri.
“Normally when we have a drought we’re really not able to quite get to other feed stuffs yet and so we have lots of animals being early weaned. We have cow-calf pairs going to market. And we have lots of the summer stocker animals being forced into-especially the last several weeks-feed yards. A lot of cattle, especially lightweight calves, that were bought last fall or early this year that people planned to ‘cheapen up’ on forage-based gains, that plan has really not worked out, unfortunately, due to Mother Nature.”
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also 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.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Cattle on Feed Up 2% - OSU's Derrell Peel Breaks Down the Numbers in this Month's USDA Report Fri, 19 Apr 2019 10:59:59 CDT
Certified Angus Beef Just Passed 1 Billion Pounds in Annual Sales, But Can They Really Hit 2 Billion? Thu, 18 Apr 2019 10:17:19 CDT
Speculation Swirls Over Potential Opportunities for US Meat Industry in Wake of African Swine Fever Wed, 17 Apr 2019 10:36:17 CDT
Register Now to Attend the 2019 Hemphill Beef Cattle Conference Featuring Dr. Temple Grandin Tue, 16 Apr 2019 10:22:45 CDT
Monday April 15th is Deadline for Submitting Comments to EPA on Waters of the US Rule Sun, 14 Apr 2019 14:25:12 CDT
Consumer Priorities Can Change, But These 3 Things Never Fall Off the List - Taste, Flavor, Juiciness Fri, 12 Apr 2019 10:18:04 CDT
CAB: 1 in 5 Fed Cattle in North America Hit Certified Angus Specs Thanks to Producers' Commitment to Quality Mon, 15 Apr 2019 05:02:54 CDT
Beef Industry's Digital Strategy Beginning to Reach Maturity as Millennials and Gen-Z Come of Age Wed, 10 Apr 2019 10:21:56 CDT
That Chuck is One Quick Study - Alisa Harrison Explains How Industry's New AI Spokesman Works Tue, 09 Apr 2019 10:48:32 CDT
Simmental Association Launches Exciting New Project Designed to Expand Carcass Data Collection Mon, 08 Apr 2019 11:26:50 CDT
NCBA's Colin Woodall Says Green New Deal Only Helps Strengthen Beef Industry's Credibility Fri, 05 Apr 2019 14:09:25 CDT
China Trade Talks Seem to be Progressing Well, But You Know China... You Really Never Can Tell Thu, 04 Apr 2019 12:18:11 CDT
Flooding Less Devastating Than Thought with Damage at Just a Fraction of Early Estimates Wed, 03 Apr 2019 12:10:47 CDT
Analyst Randy Blach Says Margins a Little Tight This Year, But Cow/Calf Sector Remains Profitable Tue, 02 Apr 2019 12:48:41 CDT
Rabobank's Don Close Says Cattle Market Has Peaked Out for the Year - Better Sell While You Can Mon, 01 Apr 2019 19:07:29 CDT
CoBank Analyst Will Sawyer Sees Great Opportunity in Continued Growth of Meat Export Business Fri, 29 Mar 2019 11:33:48 CDT
NEWSFLASH: Changing Your Diet Won't Change the Environment - In Case You Weren't Aware Thu, 28 Mar 2019 10:45:50 CDT
Left's Anti-Ag Agenda Exposed as Dems Fail to Uphold Green New Deal in Embarrassing Defeat Wed, 27 Mar 2019 11:33:00 CDT
Grilling Season is Upon Us - Beef Demand Expected to Climb as Markets Approach Seasonal Peaks Tue, 26 Mar 2019 10:24:40 CDT
Higher Than Expected Placements Take Industry by Surprise in Latest USDA Cattle on Feed Report Mon, 25 Mar 2019 11:52:24 CDT
Is Your Ranch Operation Not Performing Like It Should? May be Time for a New Management Plan Fri, 22 Mar 2019 11:31:24 CDT
If Analysts Have it Right, USDA's March On Feed Report May Show First Inventory Decline in Years Thu, 21 Mar 2019 15:12:42 CDT
Per Capita Meat Supplies May Back Off Slightly in 2019- Which Could Be Supportive of Cattle Prices Wed, 20 Mar 2019 10:44:37 CDT
Cattle UpCycle Feedstuffs Not Usable by Humans- A Sustainable Success Story for the Beef Industry Tue, 19 Mar 2019 08:38:28 CDT
Selecting for Leg and Hoof Structure- Dr. Jennifer Bormann Says a Genetic Baseline is Being Developed Mon, 18 Mar 2019 09:02:37 CDT
NCBA Chief Vet Dr. Kathy Simmons Explains the Necessity of Responsible Antimicrobial Stewardship Fri, 15 Mar 2019 11:34:50 CDT
BQA Program Highly Regarded as Producers' Most Important Tool to Ensure Quality Beef Production Thu, 14 Mar 2019 12:48:31 CDT
2018 an Exceptional Year for US Beef Exports Especially in Asian Market Despite Current Challenges Wed, 13 Mar 2019 10:58:19 CDT
Meat Scientist Brad Morgan Unphased by Rise of Fake Meat, Says It's No Competition for Real Thing Tue, 12 Mar 2019 12:01:16 CDT
Market Watcher Derrell Peel Says USDA On Feed Report Suggests Spring Weather Market Brewing Mon, 11 Mar 2019 12:22:29 CDT
Beef Industry Claims Major Victory in Fake Meat Fight But NCBA's Colin Woodall Says War's Not Over Fri, 08 Mar 2019 13:02:24 CST
If US-China Relations Fixed, Beef Demand Could Grow Exponentially - Unless Recession Gets in Way Thu, 07 Mar 2019 11:32:46 CST
NCBA's Alisa Harrison Explains Why Checkoff Research is so Critically Important to the Beef Industry Wed, 06 Mar 2019 14:25:56 CST
Industry Seeing a Return on Its Digital Investment - NCBA's Alisa Harrison Says Strategy is Working Tue, 05 Mar 2019 13:05:18 CST
There's a New Expert in Town and His Name is Chuck- NCBA Formally Launches Chuck Knows Beef Mon, 04 Mar 2019 12:14:30 CST