Beef demand has been remarkably robust through many shocks in recent years and continues to surprise and impress despite the nervousness of the industry to the challenges facing consumers.
The latest Crop Progress report shows that 71 percent of Oklahoma wheat is planted, two percent more than last year but less than the 75 percent 5-year average.
Despite ever smaller feeder cattle supplies, feedlot inventories have temporarily halted the slow decline of the last year with the September surge in placements.
Ground beef is the inexpensive alternative consumers turn to when prices rise. However, the overall decline in beef production means that ground beef supplies will be smaller and prices higher going forward.
There can be little doubt that the biggest issue in the cattle industry right now is the question of when herd rebuilding will begin. The challenge of herd rebuilding can be summed up with three questions.
Fall calf runs typically mean auction volumes increase and prices decrease to seasonal lows. This year is quite different with feeder cattle and calf prices sharply higher than one year ago while volumes are much lower.
The latest Cattle on Feed report puts inventories down 2.2% from last year, and up slightly from the August summer low, which was the lowest monthly on-feed total since September 2019.
Higher slaughter cow prices are the result of strong lean beef markets and the related growth in breeding demand for cows. The current price of 90 percent lean beef is 17.3 percent higher year over year.
Live cattle trade is part of the integrated markets for beef and cattle in North America. Canada and Mexico account for 100 percent of U.S. cattle imports and 95 percent of cattle exports.
