Beef Buzz News
OSU's Market Watcher Derrell Peel Optimistic Stability will Return to Cattle Markets this SummerTue, 21 May 2019 11:33:21 CDT
Radio Oklahoma Ag Network Farm Director Ron Hays caught up with Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel this week to talk about the current status of the cattle market. According to Peel, this spring’s cattle market, especially the slaughter cattle and wholesale boxed beef trade, peaked a few weeks ago. However, since that time, he says the market has been in a seasonal downturn.
“We did put in our peak in April. We’re moving passed that now and we expected to see this a little bit,” Peel said. “So, we’re kind of in a little bit of a lull. We’ll probably see it pick back up a little bit - at least in terms of the overall demand here as we get into late May and then we’ll be buying for the 4th of July weekend. That should stabilize things a little bit and probably slow down this slide we’ve seen in cattle prices.”
While in general, prices have been trending downward, Peel says the markets have seen some stability in the last couple weeks. However, Peel believes this to only be seasonal in nature as the industry works through some of the residual weather impacts of late. This is seen most notably in the stocker segment though feedlots have appeared to move quite a bit of cattle which has created some good demand as feeders look to reload their inventories. He says as we move through the summer if markets follow typical seasonal patterns, stakeholders can likely expect some sense of stability.
“You can look at two different halves of the market. Lightweight calves typically slide in the second half of the year - so probably sideways and then lower in the fall,” he said. “The big feeder cattle generally grind their way to a seasonal peak in about July and August. So, call it sideways to slightly higher as we move through the second quarter and get towards the third quarter.”
Listen to Peel’s full analysis of the cattle markets and his outlook for this summer, with Hays on today’s Beef Buzz.
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