Beef Supply, Demand and Leverage Points

Growing demand and increasing beef prices at the consumer level will be supportive of cattle prices.

Unfavorable weather in much of the Plains last year and disappointing calf values last fall contributed to a cool down in the expansion, and even some liquidation, of the U.S. beef cow herd in the last 12 months, said Kevin Good, vice president of industry relations and analysis for CattleFax. After five years of expansion, the national herd inventory plateaued in 2019, settling in at 31.3 million head Jan. 1, 2020. That plateau is expected to continue.

Export Opportunities and Grain Outlook

Beef exports optimistic, grain stocks to use comfortable.

African Swine Fever has been a dominating headline in 2019, and while that may not seem to affect beef producers, it absolutely does. So said Mike Murphy, CattleFax vice president of research and risk management services, at the 2020 CattleFax U.S. & Global Protein & Grain Outlook Seminar during the Cattle Industry Convention and NCBA Trade Show in San Antonio, Texas, Feb. 5-7.

In the Cattle Markets

Wild swings.

The end of February brought extreme price moves and incredible volatility to the cattle markets, caused by potentially lower beef demand from coronavirus concerns and the related effects on the financial markets. The cattle effects were lower cash prices, sharply lower futures prices and sharply higher options premiums. The nearby futures contracts were affected more than the deferred contracts.

How Much Do Genetics and Management Matter?

Genetics and management are the only ways to get to marketing end goal.

Start with the end in mind. For linear thinkers, this might feel counterintuitive, but in terms of genetic selection and management decisions, this type of thinking proves to be more profitable. Marketing calves can often be the last thought of raising cattle, but Tom Brink says it should be the first. Cattlemen should think about the marketing side of the business first and then work backward to create a specified production plan.

Strong Demand, Leverage Shift Adds Optimism for Year Ahead

Focus on consumers is required for continued beef industry success.

Beef demand is strong and with U.S. cattle numbers plateauing, prices are likely to be stronger in the year ahead as consumers at home and abroad support industry profitability. That was the message delivered during the popular CattleFax outlook session, hosted as part of the 2020 Cattle Industry Convention in San Antonio, Texas.

Improve, Document Genetics

Clint Berry, independent representative for Superior Livestock, shares how to make feeder calves more competitive by capitalizing on genetics.