By Robert Burns
Out-of sight’ beef prices pose opportunity for those with grass
Record high cattle and beef prices are actually making rebuilding herds a good bet, at least for some beef cattle producers, according to a Texas A&M AgriLife Extension Service expert.
“’Out of sight’ is a good term for the prices,” said Dr. David Anderson, AgriLife Extension specialist in livestock and food products marketing. “And it doesn’t really matter whether we’re talking about retail prices to consumers, the wholesale beef market or at sale barns for calves and feeder steers.”
Both choice and select wholesale prices continue to set new record highs, with choice taking more than $248 per hundredweight, according to Anderson.
“We sold fed cattle last week in the Panhandle at $158 per hundredweight,” he said. “Lightweight calves were selling roughly at $2.75 per pound, and 750-pound feeder steers at $2.15 to $2.20.”
But contrary to what might be thought—that the high prices for calves and replacement heifers would discourage herd rebuilding—the out-of-sight, across-the-board record prices are encouraging rebuilding herds in some areas, Anderson said.
This is because while there has been relief from the drought in some beef-producing areas, there hasn’t been in others, Anderson explained. The fickleness of the drought, coupled with historically low beef cattle inventories, is making rebuilding herds a good investment – even with record-high prices.
The high prices for wholesale beef, and the prospect that they aren’t going to go down anytime soon, creates a good opportunity for those who have been getting rain, he said.
“We still have significant areas both in the state and the U.S. that are still drought affected, who still aren’t able to really start that rebuilding process,” Anderson said. “But in areas where there’s been enough rainfall and there is enough grass, then I think we’ve got some attempts at rebuilding herds underway already.”
AgriLife Extension district reporters compiled the following summaries:
Central: Soil moisture was rated good, as were overall rangeland and pasture conditions. Crops were mostly rated in good condition, as were livestock. Producers were harvesting large amounts of hay, both from dryland and irrigated fields. There was a lot of grass on the ground, curing, with many producers getting a second cutting. Hot, dry weather was forecast for the next week, which should enable the hay harvest to proceed. Some armyworm damage was reported; grasshopper damage was higher. Crops were responding well to warmer temperatures and recent rains. Stock pond water was still limited in some areas. Some areas reported cotton received more moisture than was optimal.
Coastal Bend: The sorghum harvest began with good yields reported. Recent rains benefited cotton. Early planted corn was expected to be ready for harvest in the next few weeks. Crops and rangeland were in fair condition. However, some areas were drying out and there were no forecasts of rain soon.
East: Growing conditions remained good around the region, except for Wood County, which has been passed over by the rains much of the rest of the district received in the last month. The rest of the region has had substantial rains — too much in some instances. Houston County reported standing water in fields, and producers there were unable to get hay cut or spray for pests. Most other counties reported better-than-average forage growth, with fields producing enormous amounts of hay. Many producers were already taking third or fourth cuttings. The wet, cloudy weather resulted in some disease problems in some vegetable crops. Otherwise, fruit and vegetable yields were high with excellent quality. Local farmers markets were doing great business. Where there was standing water, mosquito and fly activity was extremely high. Armyworm and grasshopper infestations were also reported. Cattle markets remained strong with cattle prices at record highs. Cattle were in good to excellent condition. Feral hogs were active.
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