September 26, 2013
US cattle producers to expect positive trend in 2014
US cattle producers have enough positive factors to look forward to 2014 despite domestic beef demand remains an unknown.
University of Missouri livestock economist Scott Brown said cattle producers can expect corn prices to dip to 2010 levels, easing the heavy burden of high feed costs producers have had to carry through consecutive years of drought.
In addition to lower feed costs which he expects to drop to US$4.50, Brown noted the current future feeder calf prices for 2014 are US$50 higher per hundredweight than four years earlier and he''s forecasting an increase in fed cattle prices.
According to Brown, the outlook for 2014 is a lot different than anything they have seen in a long time. Although he says he has an optimistic view for next year and beyond, his prediction assumes the cattleindustry doesn''t face obstacles such as another year of drought, sever threats to animal health, a falloff in beef demand or increased trade barriers.
Although domestic beef demand remains uncertain as consumers recovering from the great recession are hesitant to pay record high prices for beef, demand abroad is enough to support beef production in the approaching years. Brown says the growing income of 1.3 billion people in China with a taste for beef will keep export numbers strong, in addition to improved beef trade to South Korea and Japan.
With all of the encouraging news for cattle producers, Brown encouraged the audience last week to take advantage of available technology when expanding their herd number.