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Oklahoma State extension specialist Derrell Peel says the rapid and harsh drop in feeder cattle prices in 2016 raises questions about herd expansion. Beef cow culling has not returned to normal and 2016 cow slaughter is consistent with only modest herd growth.
Slower herd rebuilding can tighten feeder supplies later, which supports future feeder cattle prices, while the current slide cuts producer margins. Lower cattle prices also reduce demand for feed grains and byproducts used in feedlots.
iowafarmbureau.comNov 7, 2016Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
