Everywhere you look higher prices for our beef and cattle prices, box beef trade has been moving higher, feedlot prices stronger, yearling prices on the upside, calf prices also higher on the southern plans. K-State Livestock Market Economist Glynn Tonsor says says there is some optimism out there in cattle country pushing the market higher.
"The main drivers underneth all of that is growing optimistism within the cattle industry that we're going to have a decent corn crop, coupled with we already know that supplies are tight but every signal we get reaffirms it and I think there is growing belief that demand is stable," Tonsor said.
That strong consumer demand is being bid into cattle prices - calves, yearling or feedlot cattle. Tonsor says right now the beef demand equation is a pleasant suprise.
"I think its important for our listens to recognize among the many things that trade does is that it allows us to send different products to the highest valued market, not just the whole carcass," Tonsor said. "The reason that is important as people are concerned that as we reduce what's available that people will step away from purchasing and that is probably the case for certain products."
Tonsor is known for his careful tracking of feedlot profitability - red or black ink. He says right now there is a lot of black ink flowing across the southern plains.
"The most recent numbers, we have April close out estimates that were $135 dollars per steer," Tonsor said. "That's actually the fourth consecutive month for here in 2014 that returns exceeded $125 per steer and that is the first time we've had such a fourth month positive or the magnitude being that positive sequesnce since 2003."
"The reason that's dermain ovsioualy we know we got off to a good start, but I would submit that is part of the on-going support and willingness to pay up for these feeders is that feedlot operators have had a good run," Tonsor said.
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