Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   

Beef Buzz News


Derrell Peel Discusses the Significance and Importance of the Latest USDA Cattle On Feed Report

Tue, 27 Jul 2021 10:26:43 CDT

Derrell Peel Discusses the Significance and Importance of the Latest USDA Cattle On Feed Report ssued last Friday by the USDA, the quarterly cattle on feed report is significant, according to OSU Professor and Livestock Marketing Extension Specialist, Derrell Peel.

To review the complete Cattle on Feed Report for July, click here.

The report suggests we are tightening our supplies, which could change the leverage equation, Peel said.

This year, the story has been absolute numbers, Peel said. The first half of the year revealed we had too many cattle to get through packing plants in a timely manner, and we are currently working through those numbers, he added.

The reported stated cattle on feed is 98.7 percent of last year, down 1.3 percent. Placements were down 7.1 percent compared to a year ago.

Peel commented the placement numbers are a result of the odd patterns and bizarre volatility experienced last year because of the world pandemic.

“Nevertheless, the placements are going down, and that is the real story,” Peel said.

Peel said given that cattle numbers peaked in 2019, we should we working our way consistently into somewhat tighter supplies. This will help the cattle market get back on track, he added.

He also believes these latest report findings could be repeated in the upcoming reports as well, he said.

We were on track to this last year, but there was significant disruption, Peel said. This is what created all the problems experienced earlier this year, he said.

Now we are set to see cattle on feed inventory numbers down consistently going forward, barring any other unforeseen shocks to the system, Peel said.

“This is reflected in our price forecast, too,” Peel said. “We are looking for significantly stronger prices for the rest of the year and beyond,” he added.

Tighter supplies, which translates to leverage swinging back toward cattle producers, is also part of that.

There has been a disconnected between the fed cattle market and the boxed beef market, Peel said, due to the bottleneck problem. However, cattle numbers are naturally falling which shows producers not being bound by that constraint going forward, he said.

This will put the packers back in the market and these markets reconnecting like they should, Peel said.

This sets the industry up to benefit from the strong beef demand that is currently out there, Peel said.

As the industry continues to debate issues like transparency and price negotiation, the National Cattlemen’s Beef Association has provided a plan to up the number of negotiated cattle on a weekly basis.

Peel said most of the concerns are related to price discovery with this plan and the ability for markets to “do what they do.”

“I still believe markets work and they fix problems, but some people are upset they are not getting fixed the way they expected to.”

Click on the LISTEN BAR below to hear more from Derrell 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.
   
   

right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 

Beef News

  • NCBA's Josh White Says Beef Quality Assurance Produces Better Beef  Mon, 20 Sep 2021 10:35:46 CDT
  • Certified Angus Beef Program is a Win for Producers, Processors and Consumers Says John Stika  Fri, 17 Sep 2021 10:48:26 CDT
  • John Stika Believes the Pandemic Shows Consumers Want High Quality Beef  Thu, 16 Sep 2021 08:07:17 CDT
  • Dr. Jody Wade's Advice to Cattle Producers is Stay Ahead of BRD  Wed, 15 Sep 2021 13:14:02 CDT
  • Katelyn McCullock Sees High Hay Prices in the U.S.  Tue, 14 Sep 2021 10:49:50 CDT
  • NCBA's Ethan Lane Believes mCOOL is Old News  Mon, 13 Sep 2021 11:15:37 CDT
  • NCBA's Ethan Lane Heard Little New in White House Briefing on Competition  Fri, 10 Sep 2021 11:45:17 CDT
  • Dan Halstrom Predicts 2021 Will Be a Record Year for U.S. Beef Exports  Thu, 09 Sep 2021 11:15:04 CDT
  • Dietician Shalene McNeill Says Consumers Enthusiastic About Including Beef in Their Diet  Wed, 08 Sep 2021 09:25:33 CDT
  • Shalene McNeill on Why You Should Feed Your Baby Beef  Tue, 07 Sep 2021 12:20:07 CDT
  • Randy Blach Says Sustainability is an Opportunity for Beef Cattle Industry  Mon, 06 Sep 2021 05:00:35 CDT
  • Although Beef Demand is High, Dollars are Slow to Trickle Down to Producers  Fri, 03 Sep 2021 12:25:25 CDT
  • Dr. Harold Newcomb Says Strategic Deworming Helps Your Bottom Line  Thu, 02 Sep 2021 09:33:31 CDT
  • Carbon Markets: The Wild West of Free-Market Enterprise  Wed, 01 Sep 2021 10:38:53 CDT
  • Biden Administration Intent on Dumping Trump Era Navigable Waters Protection Rule  Tue, 31 Aug 2021 16:57:44 CDT
  • NCBA's Scott Yager Says Redefining WOTUS Will Be Repetitive  Mon, 30 Aug 2021 11:18:40 CDT
  • Mark Your Calendars for the Second Annual Cattlemen's Congress  Fri, 27 Aug 2021 11:46:50 CDT
  • More From NCBA's Kent Bacus on Why Beef Exports to China, Japan and Korea Work  Thu, 26 Aug 2021 11:36:51 CDT
  • U.S. Beef is Bustling in the Pacific Rim Says NCBA's Kent Bacus  Wed, 25 Aug 2021 08:32:01 CDT
  • Bruce Hoffman Talks Treating Bovine Respiratory Disease  Tue, 24 Aug 2021 09:29:20 CDT
  • OSU's Derrell Peel Says August Cattle on Feed Report Shows Tighter Cattle Supplies Ahead  Mon, 23 Aug 2021 13:24:14 CDT
  • Randy Blach Believes Better Quality Cattle Brings Great Eating Experience to Consumers  Fri, 20 Aug 2021 09:17:27 CDT
  • Dan Halstrom: There are Concerns Despite High Exports of Beef and Pork  Thu, 19 Aug 2021 10:42:01 CDT
  • U.S. Beef. It's What's for Dinner, Globally  Wed, 18 Aug 2021 10:23:41 CDT
  • NCBA Continues Work With Members and Congress in Improving Market Transparency and Cash Cattle Trade  Tue, 17 Aug 2021 10:29:42 CDT
  • Ethan Lane Says All Eyes are on Transfer Taxes  Mon, 16 Aug 2021 09:34:18 CDT
  • Scott Yager on What New Methane Measurements Mean for the Cattle Industry  Fri, 13 Aug 2021 10:05:46 CDT
  • CattleFax VP Kevin Good Says Cattle Market Leverage is Moving Toward Producers  Thu, 12 Aug 2021 09:20:34 CDT
  • NCBA's Danielle Beck on How the Biden Administration Plans on Funding Their Goals for the U.S.  Wed, 11 Aug 2021 09:53:56 CDT
  • NCBA President Jerry Bohn Talks How the Biden Administration Could Impact Beef Producers  Tue, 10 Aug 2021 11:36:01 CDT
  • Oklahoma National Stockyards President Kelli Payne Talks Resiliency Amid the Coronavirus Pandemic  Mon, 09 Aug 2021 21:39:00 CDT
  • Oklahoma National Stockyards President Kelli Payne Talks Resiliency Amid the Coronavirus Pandemic  Mon, 09 Aug 2021 10:36:15 CDT
  • Cattle Selling This Month at The Big Event at Express Ranches are the Best of the Best  Fri, 06 Aug 2021 13:53:58 CDT
  • American National Cattle Women: The Cattle Industry’s Boots on the Ground  Thu, 05 Aug 2021 17:14:35 CDT
  • Clay Burtrum Talks Beef Checkoff Efforts Ahead of the 2021 Cattle Industry Convention  Wed, 04 Aug 2021 20:06:59 CDT

  •  

    Beef Buzz Archives

    Old Archives  |   2010  |   2011  |   2012  |   2013  |   2014  |   2015  |   2016  |   2017  |   2018  |   2019  |   2020  |   Jan 21  |   Feb 21  |   Mar 21  |   Apr 21  |   May 21  |   Jun 21  |   Jul 21  |   Aug 21  |   Sep 21  |   Oct 21  |   Nov 21  |   Dec 21
       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.

       
       

    Search OklahomaFarmReport.com

    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.