There Is Light At The End Of The Profitability Tunnel For Cattle Producers, Says OSU's Derrell Peel

 

Oklahoma Farm Report

23 Jun 2020

 

Cattle producers concerned about profitability after the COVID-19 crisis has changed the world can take heart in some encouraging words from OSU Extension Livestock Economist Dr. Derrell Peel. On Today’s Beef Buzz, Dr. Peel talks with Radio Oklahoma Ag Network Farm Director Ron Hays about what lies ahead for the rest of this year.

 

Obviously, we still have a lot of uncertainty, Peel said.

 

The heavier feeder cattle market is going to continue to struggle as there is limited space in the feedlots and this will keep a little pressure on the fed cattle market, Peel said.

 

This segment of bad news is offset by lower feed prices which Peel said will help support feeder cattle.

 

Peel said the calf market this fall could bounce back to year ago levels but no guarantee.

 

The OSU livestock economist suggested producers “hunker down” and try to wait out the storm.

 

I think so, Peel said, as the biggest question for the whole economy now is the longer-term impacts of the recession we’re in. This may soften beef demand and could play into how fast things play out in the coming months.

 

Peel said we are going to see some light at the end of the tunnel, perhaps coming in 2021.

 

Right now, Peel said, it’s important to know your financial position.

 

Depending on your financial situation going into this thing, the first question is are there threats to your business’s survival, Peel said.

 

He suggested...

 

more, including audio [5:38 min.] 

http://www.oklahomafarmreport.com/wire/beefbuzz/2020/06/00007_beefbuzz062320_101923.php