Northwest FCS Beef Cattle Market Snapshot

Northwest Farm Credit Services Beef Cattle Market Snapshot

I’m KayDee Gilkey with today’s Open Range.
Each quarter, Northwest Farm Credit Services updates more than 15 different commodities through their Market Snapshots. Northwest FCS Vice President of Market Research and Development Michael Stolp shares more from their fourth quarter 2012 results of the beef cattle Market Snapshot.

Stolp: “Cattle markets stabilized at the end of 2012 following a turbulent third quarter. Prices for calves, yearlings and fed cattle increased modestly despite continued corn market volatility. Cow-calf sector profitability remains strong and producers should enjoy healthy profit margins in 2013. Stockers and feeders will continue to struggle with high input prices and experience volatility as the rule, not the exception, in 2013. Key risks in the coming year include weather, corn prices, the health of export markets and recovery in the U.S. economy.”

In discussing pasture Conditions, the snaphot mentions that drought remains a significant concern for most Northwest producers. In addition to reduced production, drought has increased wildfires and reduced forages. The drought last summer is likely to pressure pasture values higher in 2013.

Looking to the future, the snapshot states the cow-calf sector remains in the driver seat in the beef industry. Individual producers face weather, fire and regulatory challenges, but the sector should enjoy strong margins in 2013.