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.
It’s 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 we’ve 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 we’re running close to where we were at this time last year.
We’re probably not doing that bad considering everything we’ve been through, he said.
Smaller beef cow numbers are expected by January 2021, but not a huge reduction, Peel said.
I don’t think conditions are bad enough for massive cow liquidation, he said...
more, including audio [6:30 min.]