KC Sheperd, Farm Director, is back talking with Bob Rodenberger, a Stockman Oklahoma Livestock Marketing partner, as he gives the latest on the cattle markets.
Rodenburger noted that his runs started about 10% lighter than compared to a year ago, with a good adjustment on the futures market. However, he indicated that the calf market remains strong compared to other sectors.
“This calf market will have to cheapen up sometime in the upcoming months based off of what the margin is between what a calf costs and what a feeder steer is worth next spring,” he said. “If you are buying calves, getting ready for wheat, you need to protect yourself with an LRP or with a forward contract.”
Rodenberger said that uncertainty is what is driving the market down, specifically regarding interest rates, the outcome of the presidential election, and the pending Farm Bill.
He noted that many farmers are adjusting their cattle movements due to dry conditions and anticipation of rain. He predicted a lull in the calf market over the next 30 to 60 days, a seasonal pattern observed in previous years.
