OSU's Derrell Peel Explains Why Feeder and Stocker Cattle Prices Have Been Under Pressure in Recent Days

 

Oklahoma Farm Report

14 Oct 2020

 

Prices for cattle, especially feeders and stockers, have declined significantly in recent days. Dr. Derrell Peel, OSU Extension livestock market economist, visited with Radio Oklahoma Ag Network Farm Director Ron Hays about some of the reasons.

 

Its that time of year where we are typically looking for a seasonal low, Peel said.

 

Wheat pasture possibilities, particularly in the central and southern Plains, are a big factor as we look for demand to help offset some of the big runs of calves that hit the market this time of year, Peel said.

 

Dry weather has limited the prospects of wheat pasture as the early planted wheat needs moisture to keep going, Peel said.

 

The OSU economist said an increase in feed grain prices has also hurt the feeder cattle market.

 

Feeder cattle futures have been under pressure from higher grain prices the last 10 days to two weeks, he said.

 

The USDA lowered grain yield estimates slightly and weve been exporting a lot of corn and soybeans, so those prices have been increasing significantly, Peel said.

 

However, comparing the current cattle markets to a year ago, Peel says were running close to where we were at this time last year.

 

Were probably not doing that bad considering everything weve been through, he said.

 

Smaller beef cow numbers are expected by January 2021, but not a huge reduction, Peel said.

 

I dont think conditions are bad enough for massive cow liquidation, he said...

 

more, including audio [6:30 min.]

http://www.oklahomafarmreport.com/wire/beefbuzz/2020/10/00028_beefbzz101420_083418.php