The climbing cattle inventory and poor feeding conditions this winter are having mixed results on the cattle market.
Chip Nellinger of Blue Reef Agri-Marketing says the rising cattle inventory is worrisome, especially for exports. However, it really hasn’t been phased recently due to the poor winter that has been experienced through much of the cattle feeding area of the country.
“It is probably some of…arguably the worst winter feeding conditions we’ve had in a decade. Part of the problem isn’t so much the cold and the snow it is the cycles that we have,” Nellinger says.
Temperatures have been sporadic with the recent polar vortex lower temperatures to record lows in some areas of the country and then quickly rising to above normal levels.
Nellinger says because of the mud and temperature swings cattle feeders are going to struggle with feed conversions, weight gains and health issues. This will have an impact on the currentness of the market and lower the end weight of fed cattle on the rail.
For more on what Nellinger sees happening with the cattle market going forward in 2019 watch and listen to his interview with AgDay in the video above.