Beef Cattle Market Snapshot

Beef Cattle Market Snapshot

Each quarter Northwest Farm Credit Services provides Market Snapshots of 18 different commodities. After the break we’ll learn more about Northwest FCS beef cattle market snapshot, I’m KayDee Gilkey with Open Range.?
Michael Stolp, Northwest Farm Credit Services Vice President of Marketing Research and Development gives a brief overview of the snapshot.

Stolp: “A dramatic run-up in corn prices, caused by reduced yields and drought, has put downward pressure on feeder cattle prices. The drought has impacted pasture conditions as well, resulting in many cattle producers marketing their calves and yearlings earlier than normal. However, tight domestic cattle supplies and steady demand have buoyed the market and most producers will realize record prices for their calves in 2012, though not to the extent indicated by prices earlier this spring.”

According to the Snapshot’s outlook, several factors influence the market going forward, including short domestic cattle supplies, corn yields, foreign trade activity, tight domestic supplies of competing proteins, global economic credit problems, continued high unemployment, and the health of the domestic economy. The drought is projected to continue through the fall which will increase fire risks for Northwest producers. These conditions will limit expansion for cow-calf producers in 2012, while potential expansion in 2013 will face pressure from high input costs.
I’m KayDee Gilkey with Open Range on the Ag Information Network.

For more information on the Northwest ag and forest products industries, please visit Northwest FCS’ Knowledge Center.