– John F. Grimes, OSU Extension Beef Coordinator

The subject of trade seems to be a daily topic in the national and agricultural media in recent weeks. The President appears to be determined to create an environment for “fairer” trade between the U.S. and many of our trading partners. Thus far, negotiations between the U.S. and other countries have yielded few results, tough talk, and the threat of tariffs.

Much of the uncertainty surrounding the issue of trade has created a level of anxiety within several U.S. industries. Agriculture is certainly one of those industries. Many agricultural commodities play an important role in our overall trade balance. The beef industry is greatly impacted by exports across the globe.

Annual U.S. beef exports have risen significantly over the past decade according to statistical data from the U.S. Meat Export Federation. In 2008, the U.S. exported 984,712 metric tons of beef at a total value $3.619 billion dollars. In 2017, U.S. beef exports were at Continue reading The Importance of Exports →

– Derrell Peel, Oklahoma State University Extension

As expected, supply pressures continue to build in beef markets. Beef production so far this year is up 3.6 percent on larger cattle slaughter and increased carcass weights. Year to date cattle slaughter is up 3.8 percent driven by increases in female slaughter. Heifer slaughter is up 8.0 percent year over year and cow slaughter is up 8.1 percent so far this year. Beef cow slaughter is up 12.2 percent and dairy cow slaughter is 4.5 percent more than last year. Steer slaughter is up a scant 0.1 percent year over year.

Cattle carcass weights are up year over year after dropping sharply in 2017. Overall carcass weights are up about 5 pounds for the year. Steer carcass weights are up nearly 7 pounds while heifer carcass weights are up over 8 pounds year over year for the year to date. Cow carcass weights are also Continue reading Beef Supply and Demand Challenges Continue →

– Josh Maples, Assistant Professor, Department of Agricultural Economics, Mississippi State University

Corn prices have been on a sharp downtrend since late May due primarily to a combination of trade uncertainty and a strong start to the growing season. Both nearby and new crop corn futures prices have tumbled by over 40 cents or approximately ten percent. The December 2018 corn futures contract price hit $4.26 on May 23rd – its highest level since July 2017. Just 18 trading days later, it closed Monday at a contract low of $3.77.

Corn price is assumed to have an inverse relationship with feeder cattle prices. In other words, as the price of corn decreases, the price of feeder cattle increases. This relationship assumes that all other factors that affect price remain constant such as other feeding costs and live cattle price. The inverse relationship exists because corn (feed) and feeder cattle are the two major inputs into the production of fed cattle. As the price of corn (i.e. cost of gain) declines, the price of the Continue reading Corn and Feeder Cattle Prices →

– Dr. Andrew Griffith, Assistant Professor, Department of Agricultural and Resource Economics, University of Tennessee

FED CATTLE: Fed cattle traded $2 to $3 lower than last week on a live basis. Prices on a live basis were mainly $109 to $110 while dressed prices were mainly $172 to $173.

The 5-area weighted average prices thru Thursday were $109.67 live, down $1.14 from last week and $176.83 dressed, down $1.11 from a week ago. A year ago prices were $121.51 live and $193.80 dressed.

Lower finished cattle prices have pushed cattle feeders into the red on closeouts, and it is doubtful much relief is going to come from finished cattle prices in the next couple of months. One bright spot for cattle feeders is lower feed costs as corn futures are 40 to 50 cents per bushel lower than they were one month ago and soybean meal is nearly $50 per ton lower. There remains a legion of cattle on feed that will be coming to market in the next few months which will keep fed cattle prices in check. It will be important for cattle feeders to Continue reading Weekly Livestock Comments for June 22, 2018 →