Friday’s cattle on Feed report had a surprise in it.
The placements number was 18% above a year ago. The trade was looking for 9%. Extrapolate that forward…and it looks bearish on the price of fed cattle later this year.
For consumers who cut their consumption of beef because of high prices, this could be a demand rebuilding opportunity.
Who doesn’t like beef? OK, I know a few of them too but among meat eating consumers, moderately priced beef is still king.
Does that mean a larger supply at somewhat lower prices will generate more demand so cattle producers can expand the herd in 2017 without seeing too much of a drop in price?
Dr. Darrell Peel, Extension Livestock Economist with Oklahoma State University, spoke with Ron Hays of the Radio Oklahoma Network. Dr. Darrell Peel Full Interview