Corn & Cattle Markets

With the drought conditions in the Midwest corn prices have been on a constant upward climb. Feeder and live cattle prices shot up and then back down. Executive Vice President of the Washington Cattlemen’s and Cattlewomen’s Association Jack Field talks about the impact of the drought on the corn and cattle markets.

FIELD: I think certainly as cattlemen and as livestock producers, it doesn’t matter if you’re here in Washington, or if you’re in Kansas, Texas, anywhere throughout the country, there is a real focus right now on the commodities market. If you were to lay the corn futures and the cattle futures market one on top of the other you would virtually see a direct inverse. Coupling that with the wildfires, the drought, the short supply we’ve had - looking at cattle numbers we’re at one of the record lows in terms of momma cows in the United States.

Field says that as the market continues to move the cattle feeders are going to have to get very creative at putting their rations together to make them as affordable as possible.

FIELD: I read something here the other day that on average they’re looking at a $200 per head loss on the cattle that they’re placing now, and that’s difficult for anybody. You can only loose money so long and stay in business.

There’s speculation that export markets might show some positive signs.

FIELD: It’s going to be a very interesting next couple of months, especially here in Washington, Idaho, and Oregon. Probably somewhere around the middle of September when we start to see the beginning of what would be considered the fall run, where producers here traditionally would start to market their calves, we should start to see what’s happening. And hopefully by then we’ll see some of the market volatility come out and prices come back up.

I’m Lacy Gray and that’s Washington Ag Today on the Northwest Ag Information Network.