Cattle Prospects
I’ve got a Christmas present for Americas ranchers. I’m Susan Allen, Stay tuned for Open Range. It has been a good year for cattle producers. After attending both Washington and Idaho’s annual cattle association meetings not only were there a lot of smiles and new felt hats but the fundraising was beyond generous. According to a bevy of economists from a variety of universities; Purdue, Iowa State, University of Nebraska.... all predict the beef market will remain strong with the exception that the cost of feed, notably corn, could be a wild card impacting fall calf prices. Herd liquidation is projected to continue well into 2012 meaning that fewer calves from fewer cows could set the scene for higher beef prices. Again it’s remarkable to note we have the smallest national beef herd since 1963. One Oklahoma State economist believes that the decreased inventory was fed with cheap corn so that the production maintained through 2006 is actually different from today when higher corn prices mean cattle are spending less time on feedlots upping total cattle slaughter for 2010 nearly two percent higher than last year. The conclusion from the economists and conventions was that profitability in the coming year will be about what it was in 2010, meaning Santa will be finding his way to many a remote ranch.