Higher Prices Around
The Corner
by Wes Ishmael
Nose-bleed high input costs , drought-forced cow culling and earlier calf marketing continued to constrain calf and feeder cattle price potential through the spring . That ’ s before considering the volatility and uncertainty wrought by Russia ’ s invasion of Ukraine . However , continued cow liquidation and aggressive feedlot placements suggest higher prices as the year unfolds .
“ The futures market has begun to regain some optimism for feeder cattle heading through the summer , as it should ,” according to Andrew P . Griffith , agricultural economist at the University of Tennessee , in early-June weekly market comments . “ The number of cattle placed on feed from December through April is 2.4 % or 229,000 head more than the same five months the previous year . Given the smaller calf crop in 2021 compared to 2020 , the increase in cattle on feed is an even bigger deal . This simply means there will be fewer cattle to place in coming months , which should provide feeder cattle a boost moving through the summer and into the fall months . The question is if this expectation will come to fruition , and even the largest players in the cattle business cannot answer that question .”
USDA ’ s Economic Research Service ( ERS ) projects cattle prices next year to increase for a second consecutive year and approach the record-high levels of 2014 , when the U . S . cattle inventory was the least since 1952 .
“ With a smaller 2022 calf crop and higher anticipated beef cow slaughter in 2022 , calf supplies are expected to contract in 2023 ,”
3 Sales - 3 Opportunities
We appreciate the support and confidence shown in our program . We look forward to making new connections and renewing old ones .
20129 450th Ave . • Arlington , SD 57212 f www . romnlimousin . com • romnlimo @ msn . com
ROBERT “ COOKIE ” & MARY NIELSON 605.203.0903 • 605.203.0904
ADAM , MICHELLE , GREYSON & PALMER NIELSON 605.203.0733 • 605.203.0732
- SEPTEMBER - ROM ’ N Pasture Bid Steer Sale
- OCTOBER - ROM ’ N Limousin Fall Spooktacular Online Female Sale
- FEBRUARY - ROM ’ N Limousin “ Where Class Meats Carcass ” Online Bull Sale
Come Find Us & Our Consignments at the National Western Stock Show and the Black Hills Stock Show .
38 • JULY 2022 continued on page 42