"It's Been A Long Time Coming" - Cattle Markets Beginning To Show Signs Of Support

By Dr. Derrell Peel,
Oklahoma State University Extension livestock market economist

It has been a tough fall for the cattle market, regardless which segment you look at, says Dr. Derrell Peel, Oklahoma State University Extension livestock market economist. In a recent conversation, though, with Farm Director Ron Hays, he says he is finally beginning to see some stability in the markets.

“Finally, we’ve seen some support in cattle markets pretty much across the board,” Peel said. “We’ve seen feeder cattle prices tick up; fed cattle markets have recovered; boxed beef markets have recovered.”

This is good news, according to Dr. Peel, who says it has been especially odd, since fall is the time of the year the industry generally sees its largest run of calves.

“We normally look for some seasonal weakness in prices,” Peel said. “But I think this has been an unusual fall.”

Although the markets are starting from a lower point than what was expected, Dr. Peel says there is still some opportunities to be had.

“I think this market has had a very bearish psychology - a lot of fear, frankly,” Peel said. “It’s been very slow to develop and I think we’re going to see that now. So, we have a chance to see these markets maybe improve a little bit more, given what they’ve already done.”