Livestock Market Outlook

Livestock Market Outlook

I’m KayDee Gilkey with today’s Open Range.

Cattle Fax Analyst Randy Block says the livestock markets are more volatile than ever this year.

Block: “No doubt about it, bigger swings today, record high price levels. So you start seeing the swings from these record high prices, you need to pay attention.”

Block says livestock producers are holding their breath that 2013 will be kinder to agriculture with some decent rainfall and - in turn - decent feed prices.

Block: “The last couple of years have been devastating for U.S. livestock producers -- regardless of which sector you are in. When you have record high feed costs, that drove profitability out of the livestock sector. So all of us are praying for adequate moisture and that we can grow a good feed crop this year. We need a corn crop up around 14 billion bushels, stabilize that market. We are seeing better production levels coming in from other parts of the world so hopefully we will get some help there too.”

Block says the key component Americans have to keep in mind is Agriculture doesn’t end with U.S. borders and protecting global markets is of the utmost importance.

Block: “Only 4 percent of the world population is in the U.S, these export markets are incredibly important to all agriculture -- to really all of the U.S. in total when we look at growing global incomes, growing global populations more of that is happening outside of our borders than anytime in the past. So, we don’t want to start losing access to consumers around the globe.”