Beef and Hay Market Snapshot

Beef and Hay Market Snapshot

Beef and cattle record prices continue in the third quarter. Northwest Farm Credit Service Knowledge Center’s Matthew Kloes gives an update on the beef industry.
Kloes: “Although volatile, cattle and beef prices reached record levels during the third quarter. Market bears are searching for signs of consumer resistance to high beef prices including increased substitution of less expensive pork and poultry. Bulls point to tight cattle and beef supplies, signs of improving U.S. economic conditions, and consumers’ differentiation of beef as a protein of choice. The outlook for cattle markets remains favorable for the remainder of the year. Key factors to watch include expected increases in pork and poultry production and weak growth in the global economy that may pressure U.S. beef exports.
The entire beef industry is waiting for the year-end cow numbers. Analysts believe that that herd rebuilding in non-drought stricken areas has already begun, which would cause a long-term increase in supply. Kloes continues with a hay update.
Kloes: “Despite favorable first cutting conditions, a shortage of high-quality hay persists across the Northwest,  However, subsequent cuttings were affected by weather that cut into yields and quality. Meanwhile, California and other western states experiencing drought continue to source hay from the Northwest and abroad. Tight supplies will likely support hay prices for the remainder of 2014. Buyers continue to pay high prices for Northwest hay, but anecdotal reports suggest that resistance to current prices is resulting in slower sales. Additional price increases will likely be limited by lower costs for competing feed.”

 

 

Previous ReportPhoenix Festival to Help Community After Fire Disaster
Next ReportDonating Heifer to Help Ranchers Affected by Carlton Complex Wildfire