According to Jim Robb of the Livestock Market Information Center, it is uplifting to see that despite all the turmoil in today’s marketplace, the livestock and meat markets are sailing along relatively unphased by what is going on around them. In a recent interview with Radio Oklahoma Ag Network Farm Director Ron Hays, he reviewed the latest World Agriculture Supply and Demand Estimates report (WASDE) out last week from the USDA which he says showed only small changes if any at all to the agency’s forecasts for this year.
“On the meat market side, the adjustments were rather minor, less than one percent,” he said. “Some people tried to make news out of that, but those were really in line with expectations. I think a bit of the key of the report, from a broad livestock perspective, is the trade numbers from USDA.”
Robb says many in the industry have worried that potential tariffs might disrupt what has been a relatively strong export market this year. But again, the numbers in this report showed little change to prior expectations, although there was some reshuffling of the numbers. While export forecasts were slightly lowered for the current market aggressor, China, forecasts for other markets were raised - offsetting the losses to China. Overall, Robb says the meat markets are managing to skirt around the impacts of geo-political concerns.
This is particularly good news, given the other major concern Robb shares with the rest of the industry which whether or not cattle are being backed up in the feedlots due to oversupply and increased production in the pipeline this year. But, that is clearly not the case. Robb says one must only look at the current dressed weights of steers, which are up above a year ago by 10 lbs. with no sign of abnormal changes to the seasonal patterns. According to Robb, everything is in on track and moving ahead, “steady as she goes.”
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