2-5 IAT Beef & Dairy

 A snapshot of beef and dairy markets.

 As promised yesterday, we have tapped the knowledge of Michael Stolp, VP-Market Research and Development  for Northwest Farm Credit Services  over in Spokane.  Today we look at the beef and dairy markets. Here is Michael:

Beef -- 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. 

Dairy -- Northwest dairy producers are cautiously optimistic entering 2013. After enduring a year of rising feed prices and thin profit margins, Idaho producers generally experienced a profitable 2012. Returns in Washington are more variable, including profits and losses. Although feed prices have moderated from earlier highs, increased milk production remains a drag on milk prices. Milk prices in 2013 will be significantly influenced by milk production and prevailing export demand. Lower milk prices could encourage culling as producers manage margins. Economic uncertainty across the globe may negatively impact dairy exports in the coming year.