Beef Market Snapshot

Continued tight supplies and high prices mean good news for Pacific Northwest ranchers. Northwest FCS Vice President of Market Research and Development Michael Stolp gives an update on the region’s beef industry.?Stolp: “Cattle and beef markets are strong entering spring 2014. Prices for all classes of cattle remain at record levels, and retail beef prices are increasing. Despite market signals for beef cattle producers to expand their herds, tight supplies will continue to support cattle prices for the foreseeable future. The number of cows and heifers to calve in 2014 is down from 2013, suggesting the U.S.’ beef cow inventory will shrink for the nineteenth consecutive year. Global and domestic beef demand is strong, but continued beef price increases at the retail level may challenge consumer demand.”??Also mentioned in the quarterly snapshot is is the region’s pasture conditions Drought-related stress has improved throughout most U.S. cattle producing areas. The USDA Drought Monitor reports moisture conditions in Northern Idaho and Western Washington as ‘normal.’ Moisture conditions in Central Washington, Southeast Oregon, South Idaho and Northwest California are reported as ‘severe.’ The drought in select areas of Southern Idaho and majority of California is described as ‘extreme.’ Although many areas have received recent moisture, above average and enduring precipitation is necessary to recharge water levels and sustain 2014 grazing.