Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm Programming Radio Oklahoma Network  |  7401 N. Kelley Ave. Oklahoma City, OK 73111  |  (405) 841-3675  |  Fax: (405) 841-3674

advertisements
   
   
   
   
   
   
   
   
   

Beef Buzz News


Stocker Producers Brace for Margin Squeezes as Feedlots Take Advantage of a Low Cost of Gain

Tue, 07 Mar 2017 12:12:53 CST

Stocker Producers Brace for Margin Squeezes as Feedlots Take Advantage of a Low Cost of Gain In his recent observations of the cattle market at auction barns, Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel, says there is major market adjustment happening between light and heavy weight cattle and calves and yearlings. He explained to Radio Oklahoma Ag Network Farm Director Ron Hays what is driving this adjustment, that he says is squeezing profit margins in certain segments.


“We continue to see stronger prices for these light weight cattle and these adjustments have a particularly important implication for stocker producers,” Peel said. “That means that stocker producers looking ahead to graze out wheat or for summer stockers, really need to think about margin squeezes that are happening there and maybe what that tells them about what kind of cattle they want to buy and how long they want to own them.”


According to Peel, feed grain has become less expensive, bringing the cost of gain from about $0.80 in January to now $0.60, and feedlots are taking advantage of this opportunity to put pounds on light weight cattle. Unfortunately, this comes at the expense of the stocker operation.


“Really for the first time in almost a year now,” he noted, “I would say that feeder cattle markets are really reflecting the reality at the feedlot side in the sense that these feeder cattle or stocker value of gain prospects really reflect the cost of gain at the feedlots which has gotten cheaper and cheaper over time.”


Listen to Hays and Peel discuss margin squeezes happening in the cattle market, on today’s Beef Buzz.


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.




   




   

Listen to Hays and Peel discuss margin squeezes happening in the cattle market on today's Beef Buzz
right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 

Beef News

  • USMEF Gives New Secretary of Ag Sonny Perdue Its Stamp of Approval as an Advocate for Trade  Tue, 25 Apr 2017 11:43:10 CDT
  • Latest Cattle on Feed Report Shows Industry Doing a Good Job Managing Growing Cattle Supplies  Mon, 24 Apr 2017 11:10:01 CDT
  • Integrity Beef Sustainability Project Offers Opportunity to Test US Roundtable's New Metrics  Fri, 21 Apr 2017 14:02:19 CDT
  • Serious About Ranching? Consider a Master's in Ranch Management from the King Ranch Institute  Thu, 20 Apr 2017 12:15:18 CDT
  • King Ranch Institute's Clay Mathis Talks Technology on the Ranch and How to Make Money Using It  Wed, 19 Apr 2017 11:04:07 CDT
  • Standing the Test of Time - Professional Advice on How to Think Like a Successful Rancher Should  Tue, 18 Apr 2017 13:21:14 CDT
  • Don't Wait, Start Now in Developing an Estate Plan for Your Family's Farming or Ranching Operation  Mon, 17 Apr 2017 12:24:31 CDT
  • Trump Convinces China to Grant Market Access to US Beef - NCBA Hails It a Major Victory  Fri, 14 Apr 2017 11:10:42 CDT
  • Market Watcher Jim Robb Says 1Q Strength just the Start to Solid Growth in Export Markets this Year  Thu, 13 Apr 2017 14:19:41 CDT
  • US Beef Exports Pick Up the Pace in 2017 Sporting a Strong Competitive Edge Internationally  Wed, 12 Apr 2017 12:52:44 CDT
  • Begin With the End In Mind - Finding the Right EPD Mix in Your Herd to Improve Quality and Profit  Tue, 11 Apr 2017 11:34:08 CDT
  • Small Steps That Can Take Your Herd Far in Improving the Flavor Profile of Your Cattle Herd  Mon, 10 Apr 2017 12:23:02 CDT
  • Derrell Peel Writes Feedlot Business a Clean Bill of Health Noting Aggressive and Current Marketings  Fri, 07 Apr 2017 14:05:12 CDT
  • US Beef Industry Sticking Its Foot in the Door of Asian Markets as Australia Regroups from Droughts  Thu, 06 Apr 2017 11:55:10 CDT
  • A Growing Taste for American Beef in Asia Has US Exporters Busy Trying to Keep Shelves Stocked  Wed, 05 Apr 2017 12:34:41 CDT
  • Thin Margins Force Cow/Calf Producers to Learn how to Squeeze the Most Profit from their Operation  Tue, 04 Apr 2017 11:36:20 CDT
  • Cattle Market Hitting on All Cylinders Right Now, But CattleFax Serves this News with a Grain of Salt  Mon, 03 Apr 2017 12:34:52 CDT
  • Set Yourself Up for the Best Chance at Preventing Herd Health Challenges with Bio-Mos by Alltech  Fri, 31 Mar 2017 12:41:49 CDT
  • Congressional Beef Caucus to be Re-established, NCBA Praises Bipartisan Support of its 35 Members  Thu, 30 Mar 2017 11:40:24 CDT
  • What's Bad for Brazil May be Good for US - Strategies the US Beef Industry Should be Considering  Wed, 29 Mar 2017 11:01:29 CDT
  • Robust Market Demand Keeping Beef Prices on the Rise Despite Growing Production and Supply  Tue, 28 Mar 2017 14:15:26 CDT
  • Unexpected Strong Demand Keeping Pace with Growing Supply Setting Up Sideways Trend for 2017  Mon, 27 Mar 2017 12:24:31 CDT
  • NCBA President Craig Uden Testifies on the Imperative Nature of Securing a Foot & Mouth Vaccine  Fri, 24 Mar 2017 15:42:29 CDT
  • Get Paid More by Paying More - Attention that is - to the Dollar Index of Your Next Bull's EPDs  Thu, 23 Mar 2017 12:31:03 CDT
  • The Fire is Out- But Tom Fanning Continues to Lead Wildfire Relief Efforts in Northwest Oklahoma  Wed, 22 Mar 2017 06:12:49 CDT
  • Shane Bedwell Believes the Modern Day Showring and Genomic Selection Tools Can and Do Intersect in a Positive Way   Tue, 21 Mar 2017 03:43:09 CDT
  • What's the Outlook for Beef Exports After Early Success in 2017? Jim Robb of the LMIC Weighs In  Fri, 17 Mar 2017 17:15:45 CDT
  • 2017 Marketing Year Off to a Good Start as Demand for Beef Strengthened by Pro-Trump Sentiments  Thu, 16 Mar 2017 11:28:27 CDT
  • Genomic EPDs Help Producers Learn the Value of Prediction Accuracy When It Comes to Breeding  Wed, 15 Mar 2017 15:58:59 CDT
  • Fresh Worries About Well Being of Cattle That Survived the Wildfires of Last Week- Tom Fanning Explains  Tue, 14 Mar 2017 06:01:49 CDT
  • Maintaining Proper Leg and Foot Structure in Your Herd Can Benefit Cattle's Longevity and Productivity  Mon, 13 Mar 2017 12:14:41 CDT
  • Integrity Beef Sustainability Project Offers Opportunity to Test US Roundtable's New Metrics  Fri, 10 Mar 2017 11:07:21 CST
  • Industry Has High Expectations for Integrity Beef Project to Improve and Strengthen Relationships  Thu, 09 Mar 2017 12:08:49 CST
  • What's Really the Underlying Issues Causing Market Volatility - Dr. Derrell Peel May Have the Answer  Wed, 08 Mar 2017 12:35:45 CST
  • Stocker Producers Brace for Margin Squeezes as Feedlots Take Advantage of a Low Cost of Gain  Tue, 07 Mar 2017 12:14:38 CST

  •  

    Beef Buzz Archives

    Old Archives  |   2010  |   2011  |   2012  |   2013  |   2014  |   2015  |   2016  |   Jan 17  |   Feb 17  |   Mar 17  |   Apr 17  |   May 17  |   Jun 17  |   Jul 17  |   Aug 17  |   Sep 17  |   Oct 17  |   Nov 17  |   Dec 17
       

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Oklahoma City Farm Show Stillwater Milling American Farmers & Ranchers KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com


       
       
    © 2008-2017 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup

    WebReady powered by WireReady® NSI