Beef Buzz News
Many Moving Parts Will Influence Beef Demand for Remainder of 2022
Thu, 07 Jul 2022 09:07:16 CDT
Beef cattle producers find themselves in a challenging environment this year with various headwinds impacting production and profitability. Senior Farm and Ranch Broadcaster, Ron Hays, is back with Extension Livestock Market Economist, Derrell Peel, talking about an outlook for the third and fourth quarters of 2022.
Listen to Ron Hays and Derrell Peel on Beef Demand Outlook
"We are going to continue to see the general trend we have," Peel said. "There are obviously competing forces at work here. The supply fundamentals are going to get more support as we go through the year."
On the other hand, Peel there are issues on the demand side such as inflation that may limit beef demand more so in the future than it has thus far.
"The bottom line is, I don't expect the cattle prices to go down and they certainly have the potential to go higher if some of these other moving parts will kind of line up for us," Peel said.
With higher input costs, the higher cattle prices do not guarantee that ranchers will be more profitable.
Many producers are uncertain about profitability, Peel said, and input costs are increasing faster than cattle prices at this point and time.
"I think at some point in time, as these numbers do tighten up and all of the supply fundamentals get linked up and get on the same page, then we are going to have a little more concerted push for higher cattle prices," Peel said. "Not sure that happens in 2022, but it should start to build as we move into 2023."
As for beef demand, Peel said there has not been a decrease so far.
"I think it is being moderated right now," Peel said. "For one thing, there is no cheap protein alternative. Pork and poultry prices are high, which is helping to support beef prices, but if you look within the beef market at some of the cuts and the seasonal patterns, it is pretty clear that there are some impacts here that are moderating beef demand."
Beef demand going forward, Peel said, will depend on what happens from a general economy standpoint.
"There is a lot of recession talk now and clearly there is some potential for a recession to develop, so beef demand comes down to consumer willingness and ability to pay."
In the event of a recession and additional levels of inflation, Peel said many factors will limit beef demand.
"It is tough right now because there are so many moving parts," Peel said. "This is a very complex industry always, but you know, it's not often that we have so many of the parts moving at one time and that is a real challenge."
Producers right now are being cautious in terms of cost management, Peel said, to protect potential for profitability.
"The industry fundamentals are actually looking pretty good and will look even better as we go forward from this numbers standpoint," Peel said. "It is really the external factors. Those cost and macroeconomic factors are outside the industry and those are the ones we are going to have to watch going forward."
Click the LISTEN BAR below to listen to Ron Hays and Derrell Peel on a beef demand outlook.
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
January Cattle on Feed Report Three Percent Under Year Ago- Derrell Peel Says Tighter Supplies Will Be Around for Awhile Mon, 23 Jan 2023 05:15:04 CST
Derrell Peel Talks Latest Cattle on Feed Report- Showing Fewer Cattle on Feed, Lighter Placements and Stronger Marketings. Mon, 26 Dec 2022 08:19:00 CST
Kara Lee with Certified Angus Beef Tells Cattlemen 'Cut the Bull' Fri, 23 Dec 2022 14:30:39 CST
Beef Checkoff Utilizes Digital Marketing Techniques to Interact with Consumers Thu, 22 Dec 2022 16:02:51 CST
Beef Checkoff Research, Education, and Promotion Efforts Point Consumers to Beef Wed, 21 Dec 2022 16:15:46 CST
OSU Economist Derrell Peel Expects US Beef Export Strength to Continue Into the New Year Tue, 20 Dec 2022 08:00:35 CST
NPPC's Michael Formica Feeling Positive About Supreme Courts Upcoming Proposition 12 Decision Mon, 05 Dec 2022 10:08:27 CST
NCBA Fights to Improve Marketing Options for Cattle Producers Fri, 02 Dec 2022 09:58:28 CST
Chinese Consumers Continue to Grow Appetite for U.S. Beef Thu, 01 Dec 2022 09:23:49 CST
Merck Creates Value for Producers and Consumers with Technology and Biopharmaceuticals Wed, 30 Nov 2022 09:55:28 CST
NCBA’s Todd Wilkinson Ready to Fight Back Against Regulatory Overreach in the Cattle Industry Tue, 29 Nov 2022 10:13:33 CST
NCBA and PLC Call ESA Listing Plan of Lesser Prairie Chicken Punitive for Cattle Producers in Southern Plains Wed, 23 Nov 2022 14:51:02 CST
November Cattle on Feed Report Confirms October Pattern of Lower Placements and Tighter Cattle Numbers in Feedlots Tue, 22 Nov 2022 05:07:02 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:36:33 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:27:40 CST
Midterm Elections to Set Stage for What Can Be Expected in 2023 Farm Bill Mon, 07 Nov 2022 12:13:57 CST
USMEF's Dan Halstrom Remains Cautiously Optimistic about Strong Beef Demand Going Forward Thu, 03 Nov 2022 09:35:46 CDT
Economic Factors Create Hesitancy in Beef Plant Expansion Plans Wed, 02 Nov 2022 11:03:34 CDT
NCBA's Mike Simone Says Consumer Interest in Fake Meat is on the Decline Tue, 01 Nov 2022 11:41:02 CDT
Beef Remains Valued Product for Consumers as it Allows Them to Stretch their Dollar Mon, 31 Oct 2022 09:15:56 CDT
Hugh Aljoe Provides Methods to Begin and Maintain Good Land Stewardship Fri, 28 Oct 2022 09:30:13 CDT
Implement Soil Health Practices Now to Increase Forage Production when Rains Come Thu, 27 Oct 2022 15:14:07 CDT
Third Beef. It's What's For Dinner. 300 Promotes the Beef Industry on a National Level Wed, 26 Oct 2022 15:32:23 CDT
Latest Cattle on Feed Report from USDA Implies Fewer Pounds of Beef Available in 2023 Tue, 25 Oct 2022 10:17:53 CDT
OSU's Derrell Peel- Lower Placements and Smaller On Feed Number Highlight October Cattle on Feed Report Sun, 23 Oct 2022 12:45:37 CDT
Beef Checkoff Research Continues to Share Beef Sustainability Story with Consumers Fri, 21 Oct 2022 09:23:36 CDT
Beef Checkoff Research Works to Ensure Consumers Beef is a Product They Can Trust Thu, 20 Oct 2022 13:44:44 CDT
Odds for Significant Wheat Pasture Going Lower Daily in the Southern Plains Wed, 19 Oct 2022 14:35:46 CDT
NCBA Weighs in on California's Proposition 12 Tue, 18 Oct 2022 11:32:24 CDT
2022 Stockyards Steak Out Takes Oklahoma Beef to the Next Level Mon, 17 Oct 2022 11:09:07 CDT
Holding Onto Your Cow Herd a Little Longer is Projected to Pay Off, says Randy Blach Fri, 14 Oct 2022 08:14:05 CDT
Randy Blach Confident in Better Cattle Market Conditions Down the Road Thu, 13 Oct 2022 09:43:02 CDT
No Imports or Exports Would Result in a Smaller U.S. Beef Cattle Industry Wed, 12 Oct 2022 16:11:15 CDT
Derrell Peel Explains Why International Trade of Beef is Valuable Tue, 11 Oct 2022 08:19:29 CDT
Animal Agriculture Hopeful for a Win as U.S. Supreme Court Looks at California's Proposition 12 Mon, 10 Oct 2022 09:26:17 CDT