Page 6 - MWC 2-23-2023s
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The Midwest Cattleman · February 23, 2023 · P6
Cattle Markets Building Momentum
By Derrell Peel - Oklahoma State University
Cattle market direction is er, plenty of winter left and boxed beef are poised to move
often difficult to determine opportunities for more mar- higher as supply fundamen-
in January of a new year. ket disruptions in the coming tals tighten. Cull cow prices
Carryover cattle sales for weeks. have advanced each week so
tax purposes may mask the Oklahoma auction pric- far this year and are expect-
true underlying direction of es for feeder cattle jumped ed to continue very strong
markets. Additionally, win- sharply despite larger auc- with decreased cow slaugh-
ter weather impacted cattle tion volumes following ter ahead. and drought conditions need
markets in late 2022 and weather-reduced volumes Although feedlot inven- to be monitored continuously
through January 2023. For the previous two weeks. Fed tories have declined since as we move toward spring.
the moment, at least, win- prices appeared to pick up October, cattle slaughter re- The general consensus of me-
ter weather impacts are de- strength at the end of last mains higher year over year teorologists is that La Niña
creasing, allowing feeder and week and boxed beef prices thus far for fed cattle and cull conditions are likely to fade
fed cattle flows to normalize increased to the end of the cows and bulls. Feedlot in- to neutral and perhaps to El
somewhat. There is, howev- week. Both fed cattle and ventories should continue to Niño this year but not until
tighten, and cattle slaughter the second half of the year.
should decline in the coming The remainder of winter and
weeks, although continued spring conditions may con-
drought conditions may slow tinue to be challenging as
the rate of decrease if more producers grapple with limit-
animals are liquidated. Beef ed feed supplies. Early plan-
production is expected to de- ning for the coming growing
crease year over year going season can be useful to devel-
forward as cattle slaughter op pasture/range and graz-
drops. Steer and heifer car- ing management plans to be
cass weights are current- positioned to recover when
ly below year ago levels, in conditions improve. Too
part due to previous winter much grazing too early may
weather. be self-defeating in terms of
Winter weather may im- long-term resource recovery
pact cattle markets consid- and ranch productivity.
erably in the coming weeks
Sancrest Trailer Sales
Billings, MO
417-744-2100
