Pacific Northwest Cattle Outlook

Pacific Northwest Cattle Outlook

Pacific Northwest Cattle Outlook

I’m KayDee Gilkey with the Northwest Farm and Ranch Report after this.

The Northwest’s largest cooperative ag lender, Northwest Farm Credit Services, produces quarterly market snapshots on 13 different commodities. Today we will be looking at what beef producers can expect in 2012.

Northwest FCS Vice President of Market Research and Development Michael Stolp says cattle markets are bullish right now with record high prices.

Stolp: “And these high prices are supported by U.S. herd decline. Certainly when we turned on the news this summer we saw drought throughout plains and Texas. And that drought had resulted in a decline in beef cow herd inventory. Now there has been some recent increase in beef cow herd, but we see that it isn’t enough to offset those declines. Also we see strong exports for beef. In fact exports are above 2003 pre-BSE levels. Looking forward there is no expectation in the near term that prices will come down in either feeder calves or the fats.”

The snapshot states that international export markets will continue to be a critical component of U.S. beef demand. Other factors that will influence the market moving forward, include: tight supplies; rising input costs and domestic and global economic conditions.

Provided there is not another economic crisis like 2008, the bullish supply situation expected for the next few years and high beef demand should support prices.

I’m KayDee Gilkey with the Northwest Farm and Ranch Report on the Northwest Ag Information Network.

 

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