Five Cattle Market Factors To Watch In 2011
In an outlook report, Oklahoma State University Extension Livestock Marketing Specialist, Derrell Peel, predicts that cattle prices will rise in 2011 and identifies the five market factors which are expected to have the biggest impact.
According to specialist Peel, the five market factors expected to have the biggest impact on market prices of cattle in 2011 are:
- Beef demand – Decreases in beef production in 2011 will pressure wholesale and retail beef prices to rise. Recessionary weakness will continue to limit middle meat demand, while increased competition of supplies including poultry may temper prices to a certain extent.
- Herd sizes – Limited cattle numbers are expected to result in reduced production in 2011.
- 2011 crop conditions – In 2010 corn production fell short and pushed corn prices higher. Crop prices and volatility will continue to have a big impact, especially on the feedlot sector.
- International trade – Beef exports are expected to rise in 2011; both beef exports and imports increase domestic beef demand by changing the mix of products to better meet the preferences of U.S. consumers and increase total value to the industry.
- Forage conditions – The beef industry depends on limited cattle numbers and feed grain prices depend on forage use. The quantity and quality of forage will impact the level of production and the timing of feeder cattle flows in 2011.