Fri, 14 Oct 2022 08:14:11 CDT
Senior Farm and Ranch Broadcaster, Ron Hays, is back visiting with CattleFax CEO, Randy Blach, talking more about the current cattle market conditions and the influence of drought.
Blach said factors in the market environment such as drought, inflation, high corn prices, a strong dollar, and more have created challenges for American farmers and ranchers in 2022 and onto 2023.
“Fewer pounds of beef, fewer pounds of pork, fewer pounds of poultry,” Blach said. “There is going to be less meat out there and, again, our exports will slow down, we have got a record strong dollar, we are not going to export as much protein and so we will have a little more of that, that will flow back into our market, so it will balance out.”
Looking back to 2014 when there were record-high calf prices and fed cattle prices, Blach said he believes we will revisit those types of price levels again.
“I think when we look out here, it won’t be as profitable this time around as it was the last time, because the cost structure is so much more different,” Blach said.
The La Nina weather pattern, Blach said, is expected to resist neutralizing until spring of next year.
“Likely still have another five or six months that we have got to fight through this type of a weather pattern,” Blach said. “So, that will be the biggest thing is when we finally can get enough precipitation out here that we can stabilize our grasslands, stabilize our water resources for livestock water, and again, I think that can bring stability back to our operations and actually put us in a situation that we could potentially raise a little more roughage. Roughage is a real problem out here today.”
Bach said he sees benefits for those producers who are able to hold on to some of their cow herd.
“I do think you are going to have a good payday here and I know it’s difficult, it costs a lot to carry a cow right now, and it costs a lot to buy feed, but I do believe it will be worth it when we come through the other end of the funnel here over the next 12 months,” Blach said.
Cattle prices, Blach said, are expected to continue to rise, although high input prices may have cattle producers to come out slightly above break-evens.
“We are at least moving in the right direction to where we get a little bit of stability in these grain and feed prices that hopefully we will be able to start to make some money down the road here,” Blach said.
Click the LISTEN BAR below to listen to Ron Hays and Randy Blach talking about current cattle market conditions with influence of drought.
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.
Ron Hays Beef Buzzes with Randy Blach About the Current Cattle Market