Page 6 - MWC 2-23-2023s
P. 6

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
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