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Drought & Supply Continue To Shape The Market
"Cattle feeding has mostly become a game of small margins on economies of scale mired in risk management that many times offers more opportunities than the cash position itself," say analysts with the Agricultural Marketing Service. "Most feedlots refuse to operate with empty pens, and their desire to maintain inventories causes an accumulation of feeder cattle that have unrealistic breakevens."
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Japan Might Raise Age Limit On U.S. Beef Imports
Though there's no official word yet, numerous reports during the past month suggest Japan is getting closer to raising the age limit on beef imported from the U.S. to 30 months and younger. The current requirement is 20 months and younger.
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Cattle Producers Avoid "GIPSA Rule"
Congress voted earlier this month on a $19.8-billion, ag spending bill that includes language blocking USDA from implementing controversial reforms to livestock and poultry marketing.
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Choice-Select Spread Climbs
The Choice-Select spread that took a drubbing during the Great Recession has come back in spades. After trudging along in the single digits for what seemed like forever, it began climbing in August and has averaged around $18 in recent weeks; it was $19.19 last Friday.
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Proceed With Caution On Drought Pastures
Anyone in the Southern Plains eyeballing the recent blush of green in pastures due to some fall rains can be forgiven for wanting to re-stock sooner than later. But Daren Redfearn, Oklahoma State University Extension forage and management specialist, points out that while rainfall will dramatically improve winter pastures and early spring forage production, the degree of recovery of many summer pastures remains unknown.
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Calendar Of Events
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