What Cattle Markets Should Look for in 2017

October 31, 2016 02:47 PM

With $193 per head losses in the cattle market, it’s tough to call it an improvement, But compared to last week’s losses of $248, according to Sterling Beef Profit Tracker, the $55 gain helps ease the pain.

On U.S. Farm Report, Matt Bennett of Bennett Consulting told host Tyne Morgan he thought cattle were oversold, and the beef industry won’t see strong cattle prices for a little while longer.

“There could be more weakness down the road,” said Bennett. “I think for the time being, we overdone it enough to where we could see a little bit of a bounce.”

On the other hand, Don Roose of U.S. Commodities said there’s a short-term “good seasonal low,” but there’s still a lot of supplies to consider in the fourth quarter.

“With the supplies of protein we have coming at us in the fourth quarter, those will probably catch up risk management opportunities, even in the second and third quarter,” said Roose.

With the start of a new year less than 9 weeks away, Bennett believes producers will have to consider what the upside is in the market, encouraging them to keep floors under the prices they have.

The hog market isn’t in the best shape either. One thing hurting prices is the lack of slaughter capacity. According to Roose, slaughter rates are between 6 to 8 percent. Prices could improve if rates were scaled back to a government estimate between 2 to 4 percent.

Farmers are hoping things won’t revert to the hog market of 1998, but Roose is optimistic it won’t happen again.

“I think what happened is we got too negative too early and we are finding a dead cat bounce right now,” said Roose.

Watch Bennett and Roose discuss livestock markets, China’s impact in U.S. pork, and the soybean rally on U.S. Farm Report above.

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Spell Check

10/31/2016 05:05 PM

  I'M sick of being fed a line of crap ! we don't have an over supply problem pushing prices lower.we have an increase in imports of lower quality beef driving our domestic price lower. the industry could care less about the fate of the american farmer/rancher.it's all about PROFITS!!!

Salem, MO
11/3/2016 01:07 PM

  Times have changed. Small beef farms, raise quality that is mainly grass fed. The meat is far better than feedlot beef, Yet we are paying the price for our Government's wrong choices concerning our Agriculture and livestock . What ever happened to buy American for Americans. Feed our country with our own products, grown and raised in America

Here, MT
10/31/2016 08:34 PM

  That's right Steve. Just like last years catastrophe in the cattle market. Imports imports imports. Then say we have to launch an investigation of what happened and then never hear about it again. Just screw the little guy and line the pockets of everybody else


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