02/21/06 Cattle outlook 2006

American Rancher February 21, 2006 At that USDA Outlook Conference last week department analyst Joel Green said U.S. beef production is expected to be up five percent this year compared to 2005. Imports from Canada are also expected to increase. But Green also said more export markets are now open to U.S. beef, though Japan is an exception. In making its projections for 2006 USDA is assuming Japan will reopen to U.S. beef by the second quarter. All in all, Green says prices should remain firm. Green: "So for the year looking at the choice steer prices, we expect them to average about 83-88 dollars per hundredweight. This would be down two dollars from the record of $87.28 that was reached last year." Green said prices will hold steady as supplies remain tight in the first quarter but throughout the rest of the year they will drop about two dollars per hundredweight. The outlook provided by Cattle-Fax at the recent Cattle Industry Convention, also called for fed cattle prices to be down this year, averaging from 85 to 87 dollars with the spring highs in the mid-90s with the summer lows in the upper $70s. Cattle-Fax sees feeder cattle averaging between 106 and 108 dollars a hundredweight during 2006, two to four dollars lower than last year. Calf prices are expected to trade in a range of 115 to 135-dollars during the year and average about 125 dollars. Cattle-Fax says market cow and breeding cattle prices are expected to be mostly steady during 2006. However, conditions could change if the drought persists in the southern Plains. I'm Bob Hoff.