Farm Director KC Sheperd is back talking with Bob Rodenberger, a partner with Stockman Oklahoma Livestock, as he gives the latest on the cattle markets. Rodenberger discussed a recent light run on the market, highlighting that it remained steady until it took a sudden nosedive due to the news of an avian flu outbreak in dairy. He clarified that the outbreak didn’t affect food products or milk but emphasized the general perception that it could potentially be a problem, leading to rumors and news affecting the business.
“This wheat is starting to joint out, and if we get back to 80-degree weather with this 30-mph wind, this graze-out wheat is going to be done,” Rodenberger said. “We are going to start seeing cattle move, possibly a little early. We have got to get some rain.”
Despite the market’s stability, Rodenberger highlighted the significant disruption caused by the news of the avian influenza outbreak in dairy.
“That is what I think broke the market in general,” Rodenberger said.
Regarding the lighter cattle numbers in Oklahoma and in the U.S. in general, Rodenberger said a large amount of beef can still be produced with fewer cattle.
“We have increased these genetics so much since 1990; we went from an 800-pound carcass to a 900-pound carcass today,” Rodenberger said. “Based on our kills and the way these cattle yield today, that equates to an extra 65,000 kill cattle per week over that time period.”
Bob also noted the impact of economic breakdowns on consumer behavior and demand for different types of meat. He suggested that while demand within the industry is good, the broader market and consumer trends must also be considered. He also mentioned that despite lower prices, margins were still to be locked in for those who had grass, water, and forage.
