Cattle Liquidation: A Slower than Expected Process
With your Southeast Regional Ag News, I am Haylie Shipp. This is the Ag Information Network.
A recent round of USDA numbers in regards to the number of cattle in feedlots offered little for major surprises but still managed to contain one nugget of an unexpected element. Liquidation of the U.S. cattle herd is happening at a slower pace than expected. Dr. Derrell Peel, Oklahoma State University…
“No big surprises in this report. We had marketings in the month of August down six percent, 94 percent of last year, placements were 95 percent of last year, and the on-feed total coming into September was down about two percent, 98 percent of last year. For me, personally, if there was any surprise in the report, and it’s not been a big surprise, and that’s just the fact that it’s been a slow process.”
As cattle numbers are pulled down, beef prices are at record levels. Cue the constant worry about whether or not consumers will continue to pay…
“Some consumers are not going to buy as much beef, but that is just because there isn’t beef out there. And we’ll probably see higher prices. That is kind of the way markets work when we get into tighter supplies. But, there are limits and certainly we’ll continue to push against that upper limit as hard as we can then for the foreseeable future.”
Oklahoma State University Extension Livestock Marketing Specialist, Dr. Derrell Peel.
