Late 2022 Livestock prices firm as drought concerns remain | HER

(KMAland) — 2022 has been a tough year for agriculture, including for U.S. cattle producers.

“Yeah, it was. It’s been a tough year, but I would say, if we put it in perspective, it’s been a pretty tough time here for the last three or four years now. You think of August 2019, we had the Tyson fire and we created backups there in the initial supplies. And then shortly after that we got into the COVID situation, and we had the drought on top of that through most of them, and the drought became widespread this year, so it’s been a difficult year. But I would say that despite some of those headwinds, those markets worked out pretty much as expected and ended up averaging between 142 and 143 for fed cattle for the year. Feeder cattle and calf prices also reacted.

It’s Randy Blach, CEO of CattleFax. He says the price of animal feed limits profit opportunities.

“Grain and roughage prices have been the biggest shock to the system. We just don’t generate a lot of profitability here for cow-calf producers. It was very, very difficult. And even though the price of the calf is $35,000 higher than a year ago, there’s still not a lot of money made. »

He says the markets are recovering at the end of 2022.

“We are seeing a normal seasonal rally. This is what we expect in years like this, with a high probability that we will reach our highest highs of the year in November and December in what we call these non-expansion years. So we usually remove the spring highs and do higher highs in the fall, and this year has been on schedule.”

Cattle farmers are very concerned about the drought that continues through the winter months.

“Well, it should be. We’re not going to be bringing out a lot of cattle, it doesn’t look like, this fall, or the number of cattle in the winter pasture programs has dropped significantly so far. You know, the reality is that even if we do, we have to remember that our supply of feeder cattle and calves outside of feedlots is down 800,000 head. it’s going to cost a pretty penny to buy those cattle and be able to get them out so I think producers need to be aware of that the market will react very quickly when we get rain but bear in mind that there is has 800,000 less to choose from.

Randy Blach, CEO of CattleFax.

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