Cattle market on the rise

ARDMORE -- While recent heavy rains have caused some serious damage, they also provided some much needed relief for cattle producers hit by last year's drought.

Late last summer, the lack of rain forced many cattle producers out of business. Hay prices were so high they couldn't afford to feed their animals.

But now things are looking up for those who stuck it out.

That's the news fifty-plus producers came to hear today at the Noble Foundation's Annual Livestock School.

The cattle market was just one of the many topics experts touched on, but perhaps one of the most crucial.

Economists say the price of producing calves seemed to hold steady this week, but those numbers could be on the rise.

In our area the corn market drives the cattle market. Economists say the nation's corn producers planted a record number of acres last week, which works in rancher's favor.

Agricultural economist Dan Childs thinks the cattle market is on the rise.

“It looks like going to make enough hay to stop slaughter, increase replacement animals instead of selling for lack of grass."

The news may not be quite as good for consumers. Once the price of cattle goes up, that means you'll be paying more for your hamburger or steak at the grocery store.

Economists are still telling producers to remain cautious if they plan to increase their herd-- do so gradually.


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  • by Juan Location: N. Texas on May 9, 2007 at 09:07 AM
    Re: "Economists say the nation's corn producers planted a record number of acres last week"... Actually, the economists have gotten it wrong once again. Traditionally, corn is planted on or about May 1 in the upper mid west corn belt. In reality, the abnormally wet weather last week and this week has gotten the planting season off to a slow start. The seed crops will get a late start this year in several regions of the U.S. Make no mistake, consumers will continue to pay more for food products which are derivative of the corn crop. With the government subsidy on ethanol, that alone is raising the price per bushel of corn which is currently about $3.63 per bushel. Twelve months ago that same bushel of corn was selling for $2.60 per bushel. Yes, we already paying more for food than last year. This all seems crazy because refiners expend more energy to crack corn into ethanol than the ethenal itself will generate in energy. To anyone except the government this would seem like an upside down equation. Bye the way, like many others, I would question the statement "In our area the corn market drives the cattle market". I thought it was the expectation of profit.
  • by Lillian Williams Location: Sherman on May 9, 2007 at 07:26 AM
    "In our area the corn market drives the cattle market. Economists say the nation's corn producers planted a record number of acres last week, which works in rancher's favor." Uh.scuse me but I think they are overlooking a very important fact and that is , farmers are NOT planting corn for the animal feed market or for human consumption of corn products and by products.. The corn being planted today is for alternative fuel production. So the consumer is not only going to be paying more for beef, look for items like cereal. cooking oil and anything that uses corn syrup for sweetner to go sky high.
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