Continuing COVID-19 impacts, global recession, political tensions and exchange rates will all be important in determining global beef trade in the coming weeks and months.
Markets will no doubt evolve this fall and producers must continue to evaluate winter grazing potential under dynamic market conditions and profit potential may vary widely.
Friday’s USDA cattle on feed report held a few surprises for cattlemen, and analysts are finding the available data a challenge after the turbulence witnessed the first half of 2020.
Preliminary GDP data suggest the U.S. experienced an unprecedented economic decline during the second quarter of 2020, leading to uncertainty about consumer beef demand for the remainder of the year.
USDA’s release o Friday of Cattle on Feed and Cattle Inventory report data suggests backlog is decreasing in feedyards and beef cow numbers are tightening across cattle country.
Boxed beef prices have dropped to their lowest level since 2017, and beef production will continue at a pace above last year with carcass weights up 35 pounds year-over-year.
Retail grocery will transition from limited beef supplies in recent weeks to ample supplies at the same time food service demand is slowly building this fall.
Drought conditions have expanded rapidly in recent weeks and while many regions do not yet face imminent actions, it is not too early to develop drought plans for your ranch.
The feedlot industry will spend much of the summer working through the backlog of fed cattle but the hole from March and April feedlot placements should provide a marketing window to catch up by this fall if not before.
