Page 3 - MWC 8-20-20s
P. 3

The Midwest Cattleman · August 20, 2020 · P3

                    August 20, 2020   Volume 26   No. 7

                   CATTLE MARKET OUTLOOK:                                       PRICE PROTECTION CAN HELP CATTLE
         HANG TOUGH, IT’S GONNA GET BETTER                                        PRODUCERS IN VOLATILE MARKETS
         There’s a light at the end of the cattle market tunnel,                      By Dan Childs, Senior Agricultural Economics Consultant
                         and it’s not another train.                          Many risks are ever present for agri-
                                By Burt Rutherford                          cultural producers. To attempt a listing
         “I’ve been at this for 40 years and I’ve never seen all of         of all the risks would likely be some-
      the things that we’ve gone through this year from a market            what surprising and quite lengthy. The
                                                                            risks that come to mind quickly are
      standpoint.”                                                          weather risk and price risk. The Unit-
         So    said     Randy
      Blach, CattleFax CEO,                                                 ed States Department of Agriculture’s
                                                                            Risk  Management  Agency (RMA)  has
      during the recent Cat-
      tle Industry Summer                                                   created ways to help many producers
      Meeting in Denver.                                                                            continued on page 23
      No doubt, everyone
      with enough time in                                                         SORTING THE COMPLEXITY OF THE
      the cattle business to                                                                       BEEF MARKET
      have the scars to show for it can say the same.                                                  By John Nalivka
         Blach spent a fair bit of time working through the dynam-            Carcass weights are a key issue to the beef industry today.
      ics of the past nearly 12 months as the market dealt with, and        While they are one-half of the production equation and this
      continues to deal with back to back head slaps from the Tyson         can be a problem, there is a positive aspect as well – carcass
      fire and COVID-19. Rather than rehash that here, let’s take a         grades.  On that account, since the first week of January av-
                                                      continued on page 10                                              erage carcass grades
                                                                                                                        have been 87% Choice
        BEEF EXPORT AND IMPORT ADJUSTMENTS                                                                              or higher.    This is a
                By Josh Maples, Assistant Professor & Extension Economist,                                              primary driver of de-
                             Mississippi State University                                                               mand – quality.  The
                                                 U.S. beef trade contin-                                                problem is that more
                                              ues to adjust to supply                                                   of that quality beef
                                              and demand shocks. The                                                    has to clear the mar-
                                              latest data release from                                                  ket.
                                              the USDA Economic Re-         Photo -TAMU                                     continued on page 12
                                              search Service (ERS)
                                              shows the impact of           LIVESTOCK ECONOMISTS EXAMINE IMPACT
                                              these shocks on U.S beef                  OF COVID-19 ON BEEF, PORK
                                              exports and imports. On                                 By Greg Henderson
                                              August 6, ERS released          Three  of America’s
                                              the June 2020 Livestock       leading  livestock  econ-
                                              and Meat Internation-         omists have released a
                                              al Trade  data. The  data     new working paper that
                                                      continued on page 10  examines in-depth the
                                                                            dramatic     impact     the
          NCBA ADOPTS POLICY TO SUPPORT U.S.                                COVID-19 pandemic un-
                             CATTLETRACE                                    leashed on cattle, beef

         The National Cattlemen’s                                           and pork  markets this        BS plant, Greeley, Colorado - Photo Jim Rydbom
      Beef Association (NCBA) board                                           “Beef and Pork Marketing Margins and Price Spread during
      of directors adopted a new poli-
      cy in support of U.S. CattleTrace and                                                                                 continued on page 24
      its mission of advancing disease trace-
      ability in the U.S. cattle industry. The                                                             Coming Sales-30
      policy resolution was brought forward by                                                             Life is Simple-5
      state cattlemen’s associations in Florida,
      Kansas, Kentucky, Missouri, Tennessee, Texas, and Washing-                                           Market Report-8
      ton.                                                                                                 Agribusiness
         “The NCBA policy process starts with individual producers                                         Directory-28
      – it’s a true grassroots process. To see this policy resolution
                                                      continued on page 12
   1   2   3   4   5   6   7   8