AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
October feeder cattle futures10/19/2023 ![]() August placements were down 10% from 2000 and off 9% compared to 1999. Monthly, on-feed cattle placements finally fell during August as compared to the previous year. On the other side of the coin, the industry has rapidly used up an increasingly shrinking supply of feeder cattle. Yes, there are more than ample supplies of fed cattle through the end of the 2001. Yes, the market is reacting to the potential of decreased beef demand. Producers need to keep the situation in perspective. Virginia Special Graded Feeder Cattle Sales Weekly Averages It remains to be seen what the impact will be of additional news events. ![]() During the second week of October, the market began staging a modest comeback. Our market typically experiences some weakness from September into October, but not normally of this magnitude. During the first week of October, steer prices in special graded feeder cattle sales were $3-5 per hundredweight lower than during the first week of September. Some potential buyers simply sat on their hands because other buyers were doing the same. In the Virginia feeder cattle markets, buyers became wary. As of this writing, the cattle futures markets are at the lows set two weeks after the attacks. Next came the reports of anthrax contaminations and the markets fell again. By early October, the futures had rebounded to within $2.50 of their levels before September 11. The feeder cattle futures reacted in sympathy to the feds. The fed cattle futures reacted to the concerns of the weaker economy and reduced beef demand. from a level that was already creating red ink for cattle feeders.īoth the fed and feeder cattle markets plummeted roughly $5.50/cwt. In two weeks time the cash fed cattle market dropped $4 per cwt. The US Meat Export Federation reports a 10-20% decline in imported beef sales Japan. About the same time as the terrorist attacks, Japan identified a dairy cow with BSE and the demand for beef of any kind in Japan took a hit. Additionally, beef exports for 2001 are lagging significantly behind 2000, being the victim of a stronger U.S. The cash fed cattle market was already staggering under the pressure of near record numbers of heavy slaughter ready cattle and 6 to 10 pound heavier carcass weights compared to last year. The cash fed cattle and futures markets took the bad news right on the chin. Logic suggests that a weaker economy is less supportive to beef sales. Some economists predicted a recession for an already anemic U.S. Of course, those airline cutbacks reverberated throughout other industries that interact with the airlines. airline announced cutbacks and personnel layoffs within a week of the attacks. ![]() With over 50% of beef being consumed away from home, the industry got nervous. For a time, convention and vacation traveling almost came to a halt. ![]() With great uncertainty and some anxiousness, folks simply limited their dining away from home. It would appear that the food service industry took the biggest immediate hit. How have the attacks of September 11 and subsequent events impacted the cattle market? Certainly there have been no changes in the cattle and beef supply situation in the country, but how has demand been affected? McKinnon, Extension Animal Scientist, Beef, VA Tech To see our latest newsletters and current information, visit our website atīill R. (through April/May 2009), and are provided for historical purposes only.Īs such, they may contain out-of-date references and broken links. These files cover more than ten years of newsletters posted on our old website You've reached the Virginia Cooperative Extension Newsletter Archive.
0 Comments
Read More
Leave a Reply. |