Beef Buzz News
OSU's Derrell Peel Explains Why Feeder and Stocker Cattle Prices Have Been Under Pressure in Recent Days
Wed, 14 Oct 2020 08:39:49 CDT
Prices for cattle, especially feeders and stockers, have declined significantly in recent days. Dr. Derrell Peel, OSU Extension livestock market economist, visited with Radio Oklahoma Ag Network Farm Director Ron Hays about some of the reasons.
Ron Hays Beef Buzzes With Dr. Derrell Peel
It's that time of year where we are typically looking for a seasonal low, Peel said.
Wheat pasture possibilities, particularly in the central and southern Plains, are a big factor as we look for demand to help offset some of the big runs of calves that hit the market this time of year, Peel said.
Dry weather has limited the prospects of wheat pasture as the early planted wheat needs moisture to keep going, Peel said.
The OSU economist said an increase in feed grain prices has also hurt the feeder cattle market.
Feeder cattle futures have been under pressure from higher grain prices the last 10 days to two weeks, he said.
The USDA lowered grain yield estimates slightly and we've been exporting a lot of corn and soybeans, so those prices have been increasing significantly, Peel said.
However, comparing the current cattle markets to a year ago, Peel says we're running close to where we were at this time last year.
We're probably not doing that bad considering everything we've been through, he said.
Smaller beef cow numbers are expected by January 2021, but not a huge reduction, Peel said.
I don't think conditions are bad enough for massive cow liquidation, he said.
Overall, Peel joins other livestock market economists in predicting better cattle prices over the next year.
There are lots of reason to be optimistic, Peel said.
We're looking for prices to average 5 to 10 percent higher, Peel predicted.
He added there are still a lot of concerns out there with COVID-19, election results and the weather, but beef demand has been strong.
Click on the LISTEN BAR below to hear more of Ron's interview with Dr. Peel.
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.
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