Livestock producers should not expect much more adjustment to corn prices during the 2015-16 crop year, say analysts with the Livestock Marketing Information Center. Though acres planted to corn are expected to be less, carryover should be higher.
The Pacific Maritime Association and the International Longshore and Warehouse Union reached a tentative agreement to resolve the labor dispute which has hampered the flow of U.S. exports and imports through Pacific Coast ports since last May.
There are challenges to U.S. meat exports, for one thing. Part of it has to do with the strongest U.S. dollar in years, making domestic products more expensive abroad, even if the inherent price remained the same.
“The Great Plains followed the national trend of downsizing over the 1996-2010 period, yet its relative role as home to beef cows and heifers being retained was growing prior to the drought and remains higher than 2010," says Glynn Tonsor.
High calf and feeder prices, in tandem with softer fed cattle prices, are driving cattle feeding breakevens toward deeper losses. The Livestock Marketing Information Center estimates cattle feeding losses (basis the Southern Plains) at $200 per steer in January and February.
“The cattle market is trying to sort out strength of beef demand and how consumers will respond to pricey beef products as more chicken and pork become available,” says Penton market analyst John Otte.
Derrell Peel, Oklahoma State University Extension livestock marketing specialist, points out 72% of the beef cow herd expansion documented by USDA is in Texas, Oklahoma and Kansas. These states are rebuilding from drought even as parts of them remain mired in drought.