Agricultural News
K-State's Glynn Tonsor Says Struggling Cattle Markets Propped Up By Robust Domestic Beef Demand
Mon, 23 Sep 2019 11:53:37 CDT
Extension Livestock Market Economist Dr. Glynn Tonsor of Kansas State University works on demand numbers on a regular basis including both international and domestic demand focusing on all three major meat commodities: beef, pork and poultry. According to Tonsor, the latest numbers are out and based on that data, he believes despite the many outside factors that have impacted the markets recently, beef demand domestically has remained relatively resilient.
"There is a really good story here for the month of July," Tonsor said citing the all fresh beef price calculated into his index reflecting the numbers compiled from January through July 2019. "Based on that, beef demand domestically was up five percent from the same July the year before and in fact that actually makes five out of seven months (January through July) that is up from a domestic beef demand perspective. That's a really good story."
Tonsor adds that pork was up all seven months and poultry up three of those same seven months, with all three meats up during the month of July. However, while demand was up, prices in the cattle market were noticeably down. Tonsor admits that seems to be a bit of a contradiction but explains there are multiple reasons that account for this situation, primarily the anticipation of higher corn and feed prices and the general uncertainty in trade. Even in the face of this uncertainty though, he says prices have proven resilient supported by the market's sustained confidence in the supply chain.
"If you didn't have confidence by beef buyers, you wouldn't have had the ability for those prices to go up the way they did," he said. "The way I would highlight this is- these strong monthly meat demand numbers for all three species in July have added support and the price declines we observed would have been worse had that not been the case. That's the punchline from this."
Listen to Tonsor's full analysis of the current beef market situation with Radio Oklahoma Ag Network Farm Director Ron Hays 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.
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