KC Sheperd, Farm Director, is back talking with Bob Rodenberger, a partner with Stockman Oklahoma Livestock Marketing, as he gives the latest on the cattle markets.
For the past few weeks, Rodenberger said the cattle market has had a softer tone. This week, he added that prices were lower.
“The fat market has kind of run into a stalemate today, and it is mainly due to anticipation of meat prices,” Rodenberger said. “We are going to see the consumer resist this higher meat.”
With higher prices of almost everything, Rodenberger said people do not have much disposable income.
“In general, there is still a good margin,” Rodenberger said. “With the calves being a little cheaper and the board being cheaper. The same margin is there for the people anticipating wheat pasture.”
The biggest setback for producers, Rodenberger said, would be not having that anticipated wheat pasture because there is a good profit margin for them there.
“If they are not going to go to wheat, they are going to go to the feedyard,” Rodenberger said. “The cost of gain is going to be quite a bit under what it was last year, and the cost of gain is going to be probably as cheap as what we leased wheat for last year.”
The wheat is looking pretty good for many producers in the state, Rodenberger said, as many have their wheat up and are waiting on some moisture.
“Wheat is a lot tougher than people give it credit for,” Rodenberger said.
