The dollars and sense of cattle business
By Jennifer M. Latzke, High Plains/Midwest Ag Journal
Jul 3, 2019
In today’s market environment, it’s more critical than ever that cattlemen have marketing plans in place before the first calf steps off the trailer. Derrell Peel, Oklahoma State University professor and livestock marketing specialist, will be speaking at the 2019 Cattle U, July 31 and Aug. 1. Peel will be looking at the market and trade environments that cattlemen will be facing this fall and talking through those factors that will affect their decisions and ultimately their bottom lines.
“Feed costs have jumped to a bigger deal in the last few weeks,” Peel said. “We’ll also have to look at hay supplies and quality as we go into winter.” With adverse weather limiting corn production across the Corn Belt this spring, cattlemen may have to adjust their rations and look at all of the available options of putting pounds on calves before they head to feedlots for finishing.
“We’ll talk about margin prospects for the various sectors, looking at the profitability for the cow-calf, stocker and feedlot guys,” Peel said. “These feed costs will affect the feedlot and stocker levels for sure.”
With the meeting happening the first part of August, cattlemen may be trying to pencil out wheat pasture and winter grazing systems in general. Peel plans to run those numbers for various scenarios to help producers in their decision-making process.
Plus, with international trade playing such a key role in the price of cattle and beef, Peel plans to take an updated look at the latest movements in the United States-Mexico-Canada trade pact and other trade issues that are bound to come up in the next few months.
“Trade agreements and the international sector are very much a part of the demand discussion, and warrants a little extra discussion,” he said...