Northwest FCS Beef Cattle Market Snapshot

Northwest FCS Beef Cattle Market Snapshot

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 details from the first quarter results of the beef cattle Market Snapshot.

Stolp: “Prices for most cow-calf producers remained above break even levels. Continued dry conditions have decreased pasture availability and increased pasture costs in many areas of the Northwest which will pressure profit margins and limit herd expansion. Cattle supplies remain a bullish indicator for industry with shrinking cattle numbers and staple retail demand for beef cattle prices are positioned for improvement in the latter part of 2013. Cow-calf producers are expected to remain profitable. The prospect of better fed-cattle prices and the potential for lower corn costs this fall could create profit opportunities for cattle feeders.”

The Market Snapshot includes this outlook: multiple factors will likely influence the cattle and beef markets going forward, including short domestic cattle supplies, corn yields, foreign trade activity, tight domestic supplies of competing proteins, global sovereign debt issues and the health of the domestic economy.

The U.S. drought continues in many areas and could increase fire risks for Northwest producers through the summer months. Coupled with high input costs and limited availability of pasture/forage, these conditions could limit expansion opportunities for cow-calf producers in 2013.  

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