Lower Wheat Prices Provide Better Potential For Wheat Pasture Prospects, Peel Says

Aug 21, 2015

With drought recovery across the Southern Plains this year and lower wheat prices, more producers will consider planting wheat for cattle grazing. Oklahoma State University Extension Livestock Marketing Specialist Derrell Peel said prospects for fall planting conditions are looking good for early planted wheat for fall grazing.

Lower Wheat Prices Provide Better Potential for Wheat Pasture Prospects, Peel Says

“So, I think we’re going to have quite a bit of wheat pasture,” Peel said. “Producers are thinking about planting now and they are going to be thinking about buying those stocker cattle here right away."

Cattle producers will be buying calves over the next month or two. The big unknown is how much producers will paying for calves this fall.

“I think today’s market is probably a pretty good guide for prices at this point,” Peel said. “I don’t see a lot of change happening this fall. There’s a little bit bigger calf supply coming to town this fall that could pressure prices. But I think this wheat pasture demand will sort of offset that, so I’m not really looking for a lot of change in these calf prices this fall.”

Radio Oklahoma Network Farm Director Ron Hays featured Peel on the Beef Buzz feature. Click or tap on the LISTEN BAR below to listen to today's Beef Buzz.

Producers may need some hay to supplement their calves this fall and through the winter. Peel said hay supplies look to be ample. There were a lot of quality issues in the southern plains with the heavy rains in May and June. He said the rest of the season was more favorable for cutting in July and August.

“So, I think quantity is there, quality is a little more iffy,” Peel said. “And that may create some management challenges in terms of how to utilize that properly from a nutritional standpoint."

In looking at the price outlook for stockers next spring, Peel said there is more downside risk. He said over time cattle supplies will build and that will pressure prices. He doubts that pressure will set in before February or March, but it will a bigger risk this year than in the past few years. Peel said this is something producers will have to monitor and be aware of.

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