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Beef Buzz News


Strong Fall Markets Signal More Value of Gain Being Offered in Stocker Cattle, Despite Larger Supply

Wed, 18 Oct 2017 11:05:46 CDT

Strong Fall Markets Signal More Value of Gain Being Offered in Stocker Cattle, Despite Larger Supply Cattle markets this fall have outperformed most people’s expectations, especially in regards to stocker and yearling markets. Extension Livestock Market Economist Dr. Derrell Peel, includes himself among those surprised by the welcomed strength in markets this year, after watching them tumble over the last few years around this season. He talked this week with Radio Oklahoma Ag Network Farm Director Ron Hays about what exactly is happening.


According to Peel, the price of light weight stocker calves have dropped since August as they typically do, but only by about half as much as normal during this period - showing some relatively fair strength. On the other hand, heavier weight feeders are actually running about 8 percent above August levels with very strong demand.


“When you raise the big end relative to the light end, you start to change that stocker signal in there - offering more value of gain,” Peel explained. “That’s fairly typical this time of year, but maybe even a little more pronounced this year.”


Peel says this is especially surprising, given the fact that feeder supplies are up. In fact, he notes that in Oklahoma’s combined auction totals, the state has ran 11 percent more feeder cattle compared to a year ago during the past six weeks. Even more surprising, he says, is that this is happening while wheat pastures remain undeveloped thanks to various planting delays.


“I think because there is pretty good forage conditions in general, there’s been good stocker demand,” Peel said. “I think a lot of stocker cattle are kind of stashed out on pasture waiting for that wheat pasture to get there and as a result, we’ve continued to see these strong prices even with bigger numbers this fall.”


Listen to Peel and Hays discuss the unexpectedly strong performance of cattle markets this fall, 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 Peel and Hays discuss the unexpectedly strong performance of cattle markets this fall, below
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