Marketing-Communications
It is all too easy for producers and even more so for consumers to underestimate the value of the market data that helps ensure efficient agricultural markets and a steady supply of affordable food.
The latest USDA cattle report shows a rapid expansion is underway with cattle and calf numbers up 3 percent and beef cow numbers up 4 percent in the past year. According to Purdue University Extension economist Chris Hurt, record-high cattle prices in the last half of 2014 and first half of 2015 raised excitement among beef cow producers.
The market is not falling off and disappearing, but rather the market is telling the industry that beef continues to be a highly desirable meat protein.
Cattle prices have dropped more than 32% during the last 16 months, but beef prices haven’t seen the same dramatic decline.
The CME Group has proposed a number of recent changes in an effort to resolve instability seen in cattle markets. National Cattlemen’s Beef Association (NCBA) officials say the moves aren’t addressing the problem areas and more communication is needed between the organizations.
U.S. beef imports were down 35.2% in December at 186.2 million pounds.
Cattle inventory in Tennessee increased 6.4 percent to 1.83 million head while the beef cow herd increased 2.6% to 896,000 head.
The trade agreement might be one of the biggest opportunities to turn-around a sliding cattle market.
Will the cattle market keep sliding in 2016? Could there be a rally? See what the analysts from CattleFax have to say.
Steps are being taken by CME Group to address volatility in the cattle markets, although producers will still have to deal with a bearish marketplace.
Cattlemen and women gathered today at the 2014 Cattle Industry Convention and National Cattlemen’s Beef Association Trade Show to hear CattleFax market analysts’ projections for the year ahead.
Corbitt Wall gave his weekly USDA National Feeder and Stocker summary. The report was slightly bearish.
Both packers and feeders are operating with positive margins.
Cattle futures are following the equity markets and clearly remain quite volatile.
USDA’s January Cattle on Feed report said December placements were down 0.8% while marketings were up 1.1%.
A mountain of meat has ended the longest rally in U.S. cattle prices since at least the 1960s, when baby boomers and McDonald’s Corp. ushered in the American burger boom.
Cattle prices rebounded this past week after a long slide downward.
When will the plunge in the cattle market be over?
Growing the beef cattle herd in the state of Tennessee and across the nation has taken front and center stage.
Most analysts and producers would say that feeder cattle and finished cattle have been somewhat undervalued the past several weeks which is likely the leading factor of prices making a small resurgence.
Retailers are not heavily promoting beef at this time and will likely put more of their efforts into turkey and ham the next several weeks.
Demand will be increasingly important as greater supply hits supermarket meat counters.
Cash cattle prices took a drubbing this week with fed cattle prices $4 to $5 lower at $144 to $145 per cwt. Dressed sales were reported $4 to $6 lower at $228 per cwt.
The up and down stock market looks to impact beef demand.
The Beef Industry Long Range Plan includes strategies for a stronger industry.
Prices are expected to moderate on calves this fall which means a lower upfront investment when purchasing calves this year relative to one year ago.
This month’s cattle on feed report noted 2.6% more cattle in 1,000 head capacity feedlots than last August 1.