Economist Dave Weaber shares beef market insights to help producers navigate demand, risk and future opportunities.
Brad Kooima of Kooima Kooima Varilek says live and feeder cattle futures gapped lower on the opening after a human case of New World screwworm (NWS) was announced over the weekend.
Scott Varilek with Kooima Kooima Varilek says the placements figure was slightly bearish and will likely mean a lower opening on Monday but the break is likely to be bought.
Scott Varilek, Kooima Kooima Varilek, says cattle fundamentals look supportive through fourth quarter, while corn and soybeans are running into chart resistance.
OSU’s Mark Johnson says an excellent metric to consider when purchasing bred heifers is the number of calves it takes to pay for the purchase.
Economist Dan Basse predicts a bullish outlook for the beef industry, with projected 2025 revenue of $113 billion — compared with $57 billion for corn.
As the dairy industry continues adapting to market demands, there is hope that current positive trends will benefit producers for the foreseeable future.
Patrick Linnell, director of market research with CattleFax, says consumers just continue to pay higher prices for beef.
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Brad Kooima of Kooima Kooima Varilek says there were signs in the cattle market prior to Friday’s sell-off indicating the market might be getting toppy. However, does the market negate the reversals like it has in the past?
Scott Varilek, Kooima Kooima Varilek, says cattle saw some early profit taking pressure after contract and record highs again Thursday. However, the cattle futures have been resilient and every break seems to get bought, which is a good sign of a bull market.
Market analysts agree there are only a handful of factors that could slow down or stop the incredible rally in the cattle market.
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Cow herd expansion is not the only option to consider when the markets are strong and producers have profit to invest.
Brad Kooima of Kooima Kooima Varilek says cattle futures started higher early Monday on the heels of record cash. Grains tried to bounce but may have a tough time holding any gains with favorable weather, big yield ideas and trade uncertainty.
Scott Varilek with Kooima Kooima Varilek says live and feeder cattle futures are trying to recover after an ugly day Thursday that ended with bearish reversals. Grains are mixed on favorable weather and tariff news.
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Economists further breakdown USDA’s Cattle on Feed Report and Cattle Inventory Report that were released on Friday. The Cattle Inventory Report showed the smallest U.S. herd in history and a smaller calf crop, plus the Cattle on Feed Report confirmed continued tightening numbers on feed.
Joe Kooima of Kooima Kooima Varilek says both live and feeder cattle futures gapped higher into all-time and contract highs again on Monday morning on the heels of the bullish USDA Cattle on Feed and Cattle Inventory Reports. Grains opened lower as weather is trumping export and trade news.
Scott Varilek with Kooima Kooima Varilek says both live and feeder cattle futures had a nice recovery and got within striking distance of the all-time highs set earlier in the week.
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Market analysts attribute the strong beef demand to several factors including the consumer craze for protein.
With tight supplies and a strong demand, cull cow prices continue to set records.
Brad Kooima with Kooima Kooima Varilek says the cattle futures opened lower on Monday on follow through selling after the bearish reversals scored on Friday. Corn and soybeans fall with rains over the weekend in the Corn Belt.
The consequences of reduced cow slaughter is a reduced U.S. supply of lean grinding beef, which leads to sourcing beef through imports.
A disconnect with cash and futures market and discussions about New World screwworm and tariffs, along with macroeconomics brings some uncertainty.
Check out the Sterling Marketing Profit Tracker for the week of July 12.
Brad Kooima of Kooima Kooima Varilek says cattle futures are seeing some routine profit taking after hitting all-time and record highs again on Friday. Corn is seeing short covering off fresh contract lows but can it hold any gains?