Add Another Bull to the Cattle Market
With your Southeast Regional Ag News, I am Haylie Shipp. This is the Ag Information Network.
Tyler Schau is a hedging strategist with AgMarket.net. He is also an optimist when it comes to the cattle markets for the rest of the year…
“We’re pretty positive on the cattle market going out for the next 12-18 months. The USDA came out with a cattle report earlier in the year. It wasn’t a really big shocker. We’ve got the lowest beef cow herd we’ve had since the 1960s. So we’re going to struggle to find enough animals to put in the feedlot. I think the big, important thing to watch is going to be the drought in the southern and the central plains. As soon as they get rain, drought-busting rain to where they feel like they can take heifers, hold them back, rebuild their herd because they feel like they’ve got enough feed and hay available for next year, I think that’s when you really see that supply of feeder-ready cattle drop and then the race is on for feedlots to go find those feeder cattle.”
If the drought persists, he says he expects cattle markets to remain positive...
“If we stay it in again for, you know, the rest of this summer, I still see it as positive to feeder cattle prices and fat cattle prices. That last big leg up is going to come when the drought gets busted.”
And again that is Tyler Schau. He is a hedging strategist with AgMarket.net.
