Lower Beef Supplies
More Demand for Yearlings and Calves Ahead
By Victoria G Myers, Progressive Farmer/DTN
Commercial cattlemen should see stronger prices moving through 2021, due largely to supply numbers that continue to be revised and reduced.
Corbitt Wall shared that positive outlook for the market side of ranching during Boehringer Ingelheim's "Business of Beef: Health and Management Summit" last week. Wall is a nationally recognized commercial beef economist and livestock market analyst with DVAuction.
Wall, a former agricultural market reporter with USDA, noted the agency's inventory reports had been a source of frustration for many who felt they were late in showing a decline in cattle supplies. "Finally, we are seeing evidence with a USDA stamp that shows we are in declining supplies, and that's good for markets," he said.
He called the latest inventory report "bullish" and added the changes looked at on a percentage basis were not as telling as they could have been because USDA had revised down 2019 and 2020 numbers significantly. The cattle and calf inventory figure the industry is working with today at 93.6 million head is down 200,000 head from the January 2020 report...