Easing Meat Market Competition Presents Opportunities Of Potential Profit Taking For Beef Producers

Jan 24, 2017

For beef producers, this may be a year of potential profitability, so Radio Oklahoma Ag Network Farm Director Ron Hays has been told by Jim Robb of the Livestock Marketing Information Center.

“I think we’re very close to black ink. We’ve had a very solid rally in the cash live cattle market,” Robb remarked, adding that, “Calves and yearlings have followed along suit.”

That rally, which has sustained since early December, has been very beneficial for the industry, says Robb. With prices in both feeder cattle and feed commodities down, he expects to see a consistent flow of “black ink” into the cattle feeding sector as early as February. He says modest year-over-year declines in prices will still likely occur in 2017 and into 2018, but assures barring any unforeseen complications, the markets should not experience any drops like those that happened last year as pressure eases from competing meats this year.

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Video: What Does 20 MILLION Hogs a Year Look Like?

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