Drought, High Feed Costs Tempering Optimism For a Better Cattle Market, Says OSU's Derrell Peel

 

Oklahoma Farm Report

27 Apr 2021

 

Optimism of a strong cattle market in 2021 is being tempered somewhat by drought and higher feed costs said Dr. Derrell Peel, OSU Extension livestock market economist.

 

I havenít given up on it, but you look at the feed market and it has been stronger than anybody expected, Peel said.

 

I am still cautiously optimistic, especially for the calf market towards the end of the year, he said.

 

The OSU economist is closely watching the draught.

 

Weíve got huge drought issues out west and this is a critical time, he said.

 

There are some parts of the country that arenít going to grow any forage unless moisture arrives in the next 3 to 6 weeks, Peel said.

 

When you look at the drought expansion in North Dakota and Texas where there are lots of cattle, we could see some broader market impacts if there is more liquidation there, he said.

 

Itís been dry for many months in the southwest but there is just not a high density of cattle in Arizona and New Mexico, he added.

 

For Oklahoma things are in better shape...

 

more, including audio [5:32 min.]

http://www.oklahomafarmreport.com/wire/beefbuzz/2021/04/00522_beefbuzz042721_075723.php