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At the current time, the cattle industry is waiting on confirmation back from England to see if the retest cow from last fall has BSE. Even if the test comes back negative, producers are faced with marketing problems in the cattle industry.
Since April 1, fat cattle prices have dropped from $92 to about $82- $83. Even with cheap feed there are cattle coming out of the yard at a loss. With demand weakening, corn prices increasing, and higher hog and poultry production, August live cattle futures are trading below $80. If this trend holds and causes the cash market to fall below $80, a lot of cattle will be coming out of the yard that will lose $75 - $100 a head.
This could cause a big pull back in calf, stocker, and feeder cattle prices. Managing price risk is always prudent in this volatile industry.
If you have questions or want a workshop in your county, please give me, Bryce Myrick, a call at (254) 715-5055.
By Bryce Myrick
Director, TFB Agricultural
Marketing Education
