Beef Cattle Market Snapshot

Beef Cattle Market Snapshot

According to the most recent Northwest Farm Credit Services quarterly beef cattle Market Snapshot the first half of the year had steady and historically high cattle prices; however cyclical market erosion began in the third quarter and while prices have declined, they do remain strong compared to historical levels. Northwest FCS Vice President of Customer Insights Michael Stolp shares more details from the third quarter snapshot
Stolp: “Cattle and beef prices have experienced a prolonged period of strength, including steady gains that resulted in historically high prices through the first half of 2015. Despite a sharp decline in fed cattle prices at the end of the third quarter, analysts predict historically high cattle prices will continue through the year, supported by historically low supplies and strong domestic beef demand. Beef prices dropped from record levels, pressured by lower prices for pork and chicken. Overall prices are below those reported a year ago, but still significantly higher than historical averages.”
The Market Snapshot additionally reported that exports connived to decline through the third quarter of 2015, slowed by a strong U.S. dollar and continued high prices. Feed costs remain low, but corn prices began to increase recently. Experts anticipate the 2015 corn crop will be smaller than originally projected, likely resulting in further price increases. Also drought conditions in the western states have had devastating effects on many acres of pasture and range ground, which could also place upward pressure on feed prices.

 

 

Previous ReportSixth Judicial Circuit Stays WOTUS Implementation
Next ReportPreparing for Winter