 |
||||
|
||||
|
|
||||
A Texas extension economist admits that demand for beef is up and cow-calf producers should make some money over the next three years or so, however, it may be a different story for cattle feeders. But both markets are dependent on the weather. "Calf prices are going up," said Dr. Ernie Davis of Texas A&M. He believes this will translate into more profit for the cow-calf producer. "Feeder cattle prices are also going up." Through February 26, 2000, five and six weight steers in the weekly cash market averaged almost $94 per hundred. Last year, they averaged $83. In 1998, they averaged about $79. There was a big jump in seven to eight weight steer prices through February 26, Davis said. They averaged $88.12 per hundred the first two months of the year. In 1999, they averaged $73.69 per hundred. "We're starting out the year strong with the cattle," Davis said. "We're probably not going to have the downturn like we had in 1998. It will be flatter like we had in 1999." He said prices should remain flat because of projected rising corn prices in the latter part of the year. In addition to projected higher corn prices, feedyards will have a large number of cattle to sell this summer. And that could really impact feeders profit overall. "We've got large numbers of cattle out there that have to come on the market between now and the end of the summer," Davis said. "Because of that, even with the improved demand that we've got, we're going to be lucky to maintain fed cattle prices in the high $60s throughout the summer." He predicts that fed cattle prices will be in the mid-$60 range, although if feedlots get behind in their marketings, it could drop into the lower $60 range. Feedlot placements have been high. At the end of 1999, they were very high in part because of the drought, but that will begin to decline after the July-August period, he believes. "We've marketed a lot of our calf crop early," Davis said. "A lot of the cattle that would have been put on feed in March and April were put on feed in October, November and December be-cause of the dry weather. "Our marketings have been up," he said. "Our placements have been up. That's going to change." Feedyards are facing some trying times, he said. "Just how much the impact corn prices will have, I don't know," he said. "If we're going to have $70 plus cattle in the last quarter of the year, we're probably going to see some cheaper fed cattle during the summer months," he said. |
||||
|
|
||||
|
|
||||
|
All information is copywrited by Feed Lot magazine and cannot be printed or re-printed
without the publishers express consent. Please contact
Feed Lot Magazine for reprint and copy authorization.
|
||||