KEEPING TRACK OF THE LATEST BEEF CATTLE ECONOMICS
by Josh St. Peters
Since the beginning of the year, I have logged a lot of miles crisscrossing the state, connecting with hundreds of producers in all corners of the state. The recurring theme of discussion has been the strength we’re seeing in our cattle markets, and the looming question of how long this will last. Absent a crystal ball, I think a producer’s best bet for monitoring market forces is to utilize the many great sources available to us from economists that are much smarter than me.
I have pulled together highlights from a few of my regular sources. Most of these outlets offer a way to get their updates delivered directly to your e-mail on a regular cadence. Many are free, although a couple may reside behind a paywall:
From Oklahoma State’s Extension Cow-Calf newsletter, an interesting highlight of just how strong our cull cow market has gotten: “Slaughter cow prices are driven by the price of 90 percent lean beef trimmings (90s), which posted a price of $317.36/cwt. the first week of March. This is a record high price for 90s in data back to 1978 and undoubtedly an all-time record weekly price.”
A recent market synopsis by Mike Miller of CattleFax highlighted the surge that calf prices have experienced since January 1: “Something noteworthy that has gone a bit under the radar is the fact that U.S. average calf prices have made new all-time highs for seven consecutive weeks. This past week, the price for U.S. average 550-pound steer reached $320 per cwt. This represents a $40 per cwt. increase since the start of the year.”
The “bottom line” prediction from Miller: prices for all classes of cattle will remain solid throughout the year, and he’s hedging his bets that an adequate corn crop and continued strength in the futures this year, and we could see calf prices “solidly in the low $300s… and feeder cattle exceeding all-time highs.”
So, what does this mean for the retail beef market and our relationship with consumers? Look to Nevil Speer’s latest column in Drovers for insight on the importance of quality. On the topic of consumer spending in the retail case, Speer says, “at the very core, the beef industry IS a consumer business – or alternatively, consumers ARE the business. And while some might dispute that thinking, they forget (or never learned) the lessons of overlooking product quality during the ‘80s and ‘90s. Beef spending grew only $6/person between 1980 and 1998 (meanwhile, inflation was running at ~4%). The industry was flailing; beef was fat, tough, and wonky. And the fed market reflected that reality. That’s since turned around. Since 2000, per capita domestic spending has grown ~$11 annually – representing an annual growth rate of ~3.7% (beating inflation by better than 1%). That means more dollars coming into the business - and as referenced above – the overwhelming majority resulting from sales at the top end of the quality grade mix.”
Additional sources to checkout:
OSU’s Derrell Peel talks cattle imports from Mexico for BeefProducer
Meghan Grebner of Brownfield shares Weekly Livestock Market Update with Mizzou’s Scott Brown
Dennis Smith highlights impending seasonal demand increases for BEEF magazine
LOOKING FORWARD
IBA Award Winner Nominations
Your nominations for the Illinois Beef Association member awards are critical to recognize those individuals who “give their all” to make our industry the best it can be. Nominations can be made for your operation or on behalf of another producer. The winners will be recognized at the IBA Annual Meeting. We are very proud of the contributions made by the producers in our industry. This is an opportunity to recognize them both personally and professionally. Nominations close Friday, March 29, 2024!
Seedstock Report
Producer Events
Tri-County Cattlemen
Cattlemen’s Forum | March 22, 2024
Mek’s on Main, Monmouth - Attendance is free, but registration is requested.
Adams County Beef Producers
Beef Bonanza | March 23, 2024
The Ambiance - Tickets can be purchased from any Adams County Beef Producer.
Henry County Beef Association
Annual Banquet | March 23, 2024
Lavender Crest Winery - Tickets can be reserved with any board member.
Prairie Beef Association
Showcase | April 7, 2024
DeWitt Co. Fairgrounds - For more information visit the Prairie Beef Association Facebook page.
Whiteside County Cattlemen’s Association
Annual Banquet | April 19, 2024
New Life Lutheran Church, Sterling - The Spring Banquet and Scholarship Fundraiser will feature guest speaker, Dr. Temple Grandin. Tickets must be purchased in advance from Whiteside Cattlemen’s board members.
Anna First Christian Church | Anna | Saturday, April 13, 2024
Join IBA for our next CCES meeting in
Illinois! We will be working with the Illinois Grazing Lands Coalition to discuss the implementation of sustainable grazing programs for spring, summer and fall. Plus, get to tour small and large cattle operations with strong grazing programs already in place. Register today at www.IllinoisBeef.com
E-NEWSLETTER CATTLE CONCEPTS ILLINOIS BEEF | ILLINOIS BEEF ASSOCIATION | SPRINGFIELD, ILLINOIS | WWW.ILLINOISBEEF.COM |
devin@illinoisbeef.com MARCH 20, 2024 MONTHLY NEWS
Upcoming Sales Bramlet Simmentals From the Ground Up Sale: Spring Edition Harrisburg, IL 3.30.24 Prairie View Farms 14th Annual Production Sale Gridley, IL 4.5.24 Andras Stock Farm Red Angus Bull Sale Manchester, IL 4.6.24 Panther Creek Ranch 30th Annual Production Sale Bowen, IL 4.6.24 Tree Lane Farms Female & Genetics Sale SC Online 4.8.24 Four Corners Farms Angus Fall Born Show Heifer Sale SC Online 4.8.24 Lampe & Frost Fall Born Sale SC Online 4.8.24 Dameron Angus Annual Live Online Spring Sale CCI.Live 4.8.24 Double Diamond Angus Diamonds in the Rough Heifer Sale SC Online 4.9.24 Ellis Farms Annual EFBEEF Bull & Female Sale Chrisman, IL 4.13.24
SALES REPORTS SOURCED FROM USDA AGRICULTURAL MARKETING SERVICES
SALES REPORTS AND UPCOMING SALE INFORMATION TO DEVIN@ILLINOISBEEF.COM
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