Happy New Year! This week’s article is part two of a two-part Supply and Demand series that began before Christmas. You can find Part 1 by clicking HERE.
Domestic Beef Demand
While the larger supplies discussed in Part 1 will remain the biggest headwind to stronger prices in 2019, … Continue reading
So we have a new Farm Bill if, as all signs suggest, the President signs the new legislation. The bill is estimated to cost $428 billion over the next 5 years and $867 over the next 10 years according to the Congressional Budget Office (CBO). Over 76% of the cost is estimated to be for the Nutrition title of the bill. … Continue reading
Large supplies, record exports, and trade concerns are just a few of the topics that have dominated the headlines in 2018. Amidst all of these factors, calf prices have shown relatively consistent strength throughout the year. 2019 will likely bring a flat year in national herd growth which will position the industry at a pivotal point for supplies and prices moving forward. … Continue reading
This week’s article comes from Dr. Derrell Peel at Oklahoma State University. I wrote about the cull cow market a few weeks ago (available here) and I found Dr. Peel’s comments today to be valuable info to add to the ongoing narrative on cull cow markets. Above is a seasonal index for cull cow prices. … Continue reading
Cattle markets overall have shown impressive strength despite larger supplies during 2018. Feeder steer market averages have been near level or slightly stronger than 2017 levels in many markets over the past few months even in the face of larger calf supplies. USDA-AMS reported national feeder and stocker receipts were around 15 percent higher during August-October 2018 as compared to the same three months during 2017. … Continue reading
Now that summer is fully behind us, we can get a picture of how strong meat demand was during this time. In short, it was a good quarter for the U.S. economy in general and also for beef and other meat demand. Consumer confidence continued to grow during this time and that boosts consumer spending. The following is a mix of my commentary and that of my colleagues at the Livestock Marketing Information Center. … Continue reading
The deadline for a relatively new (for Mississippi) subsidized forage insurance program is November 15th for the 2019 year. Forage production is a primary source of grazing and hay for livestock producers and forage production is highly dependent on rainfall. The uncertainty of rainfall amount and timing is a risk all forage producers face. To address this risk, … Continue reading
I am really proud of our undergraduate research program at Mississippi State. This past year Alba Collart and I mentored Shea Gould an undergraduate researcher who has now joined our Department as a grad student. In her undergraduate research she asked a representative sample of 465 U.S. adults their preferences for allocating funds to the programs authorized in a farm bill. … Continue reading
It is no secret that the price at which retailers can ultimately sell beef and other meats has an enormous impact on the price of cattle. Beef demand is contingent upon quantity sold and the price at which it was sold. The prices of other proteins, namely pork and chicken, have an indirect impact. If pork price gets cheaper compared to beef, … Continue reading
The latest USDA Cattle on Feed Report was released on Friday and showed some positive news for prices for the rest of Fall and into early 2019. The inventory is still large. Indeed it is another “record-large” total as 11.4 million head in feedlots is the largest October 1st total since the COF series began in 1996. … Continue reading
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