Livestock Marketing Expert Provides Insight on Current Cattle Market Conditions
The Southeast Wyoming Beef Symposium and Trade Show is a great opportunity for producers and industry professionals to come together to learn, grow, and connect. At the recent event in Torrington, University of Wyoming Livestock Production and Marketing Specialist Rob Ziegler shared some valuable insights on the current state of the cattle market.
Ziegler highlighted the fact that the beef cattle inventory is currently at its lowest level since 1941, with no immediate signs of a rapid rebound. This lower inventory, combined with larger cattle and declining cow herds, means that prices are likely to increase due to short supplies.
In terms of prices, Ziegler noted that calf prices typically drop in October when calves are weaned and shipped, but this year saw an unexpected increase. Similarly, cull cow prices have been on the rise, with potential for even more upside as demand for bred cows increases.
Looking ahead, Ziegler emphasized that rebuilding the nation’s cattle herd will likely take longer this time around. He mentioned that the percentage of heifers on feed needs to drop below a certain mark before producers start thinking about rebuilding their herds, and as of now, there’s no indication that this is happening.
When it comes to beef prices and input costs, Ziegler shared some interesting data. While live steer prices are forecasted to increase in the coming years, input costs have also gone up significantly. This means that even though prices may look promising on the surface, profit margins may not be as robust as they were in the past.
Lastly, Ziegler discussed livestock risk protection as a tool for managing market risk. He stressed the importance of having a safety net in place in case of price fluctuations and explained how livestock risk protection works, including coverage options and application processes.
Overall, Ziegler’s presentation provided valuable insights into the current state of the cattle market and offered some useful tips for producers looking to navigate the ever-changing landscape of the industry.
