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
Derrell Peel Sees Beef Cow Culling to Set All-Time Record by the Fourth Quarter of 2022 Mon, 26 Sep 2022 10:03:22 CDT
Integrity Beef Helping Producers Develop Value Added Cattle Fri, 23 Sep 2022 11:18:28 CDT
OCA's Michael Kelsey Likes Pond Cleanout and Drilling Water Wells as Possible Investments of Emergency Drought Funds Thu, 22 Sep 2022 10:58:02 CDT
Iowa Cattleman Tells Lawmakers About Improvements Needed in EQIP and CRP Wed, 21 Sep 2022 10:21:45 CDT
Beef Demand Remains Stronger than Anticipated Despite Stubborn Inflation Tue, 20 Sep 2022 09:41:19 CDT
As Drought Persists, Cow Herd Liquidation Continues Mon, 19 Sep 2022 10:03:30 CDT
Integrity Beef Receives Climate-Smart Ag Grant to Ensure Longevity and Sustainability of the American Ranch Fri, 16 Sep 2022 09:35:58 CDT
Hereford Breed Continues to Provide Value to Cattlemen as Demand Remains Strong Thu, 15 Sep 2022 09:00:11 CDT
Consumers Keep Buying Beef, but Many Looking for Ways to Keep Cost Per Meal Affordable Wed, 14 Sep 2022 10:42:26 CDT
Decades of Work by Beef Industry Yields a Billion Dollars Monthly in Beef Exports Tue, 13 Sep 2022 09:44:36 CDT
Biden Administration Hurries to Finish Their Finalized Rule on WOTUS- Ignoring Supreme Court Arguments in October Mon, 12 Sep 2022 10:53:15 CDT
Mary Thomas Hart says Livestock Regulatory Protection Act is a Top Priority for NCBA Fri, 09 Sep 2022 08:54:03 CDT
Cattlemen's Congress- The Mecca for Domestic and International Cattle Producers Thu, 08 Sep 2022 09:58:03 CDT
PJ Budler Working with Cattlemen's Congress to Make it a Premier Destination for International Cattle Producers Wed, 07 Sep 2022 09:37:02 CDT
As Concerns Over China Rise, They Remain a Top Tier Destination for US Beef Tue, 06 Sep 2022 10:39:19 CDT
ICYMI- OSU's Rosslyn Biggs talks Rural Vet Shortage Across the Country Mon, 05 Sep 2022 12:37:29 CDT
Beef. It's What's for Dinner. Remains a Top-Tier Brand to Consumers Fri, 02 Sep 2022 08:52:58 CDT
USDA Proposal on Electronic ID Tags Only for Animal Disease Traceback Thu, 01 Sep 2022 10:01:40 CDT
NCBA Supportive of Cattle Electronic ID System to Aid in Disease Traceability Wed, 31 Aug 2022 09:10:48 CDT
OSU's Derrell Peel Sees Tighter Cattle Numbers Translating Into Falling Beef Production Tue, 30 Aug 2022 10:18:19 CDT
FSA Administrator, Zach Ducheneaux, Working to Continuously Improve Assistance Programs for Cattle Producers Mon, 29 Aug 2022 10:04:40 CDT
Jaymelynn Farney Provides Insight on Good Forage Options for Cattle Producers in Fall 2022 Fri, 26 Aug 2022 10:20:15 CDT
Cover Cropping a Valuable Strategy for Ranchers, says Jaymelynn Farney Thu, 25 Aug 2022 13:16:08 CDT
Hay Supplies are Short and Likely to Get Worse, Says Cattle Marketer Bob Rodenberger Wed, 24 Aug 2022 08:00:08 CDT
Significant Decline in Female Numbers Coming in 2023 says Derrell Peel Tue, 23 Aug 2022 09:48:22 CDT
USDA August Cattle on Feed Report Run-Down with Derrell Peel Mon, 22 Aug 2022 10:14:46 CDT
Upcoming Webinar to Educate Cattle Producers about the Newest Pest Threatening the Industry Fri, 19 Aug 2022 09:06:31 CDT
NCBA's Kent Bacus Says Beef Exports Looking Great in 2022- But There's Still Trade Challenges to Conquer Thu, 18 Aug 2022 09:16:08 CDT
Dr. Glenn Tonsor Sees Red Ink Disappearing Soon in His Latest Feedlot Closeouts Wed, 17 Aug 2022 09:24:01 CDT
Everyone Has a Role in Beef Sustainability, says Debbie Lyons-Blythe Wed, 17 Aug 2022 05:02:31 CDT
OSU's Rosslyn Biggs talks Rural Vet Shortage Across the Country Mon, 15 Aug 2022 11:14:52 CDT
Producer Owned Beef Processing Plant to Break Ground in Early 2023 in Amarillo Fri, 12 Aug 2022 09:27:19 CDT
NCBA Chief Veterinarian Kathy Simmons talks about a New Threat to Cattle Producers, the Asian Longhorned Tick Thu, 11 Aug 2022 10:11:48 CDT
Factors to Consider When Planning for Drought with Dr. Laura Goodman Wed, 10 Aug 2022 10:14:29 CDT
OSU's Dr. Laura Goodman Provides Strategy for Optimizing Forage Growth in Dry Conditions Tue, 09 Aug 2022 09:07:33 CDT