Marlin Bohling and Derrell Peel break down the cattle market, focusing on key reports, drought challenges, and price volatility.
They discuss how the USDA cattle inventory report is shaping market expectations, the effects of the New World screw worm on Mexican cattle imports, and why drought conditions are forcing herd liquidation. The conversation also touches on record-high beef prices, shifting consumer demand, and the future of herd rebuilding in the U.S.
Takeaways:
🔹 The USDA’s cattle inventory report is crucial for market analysis.
🔹 The New World screw worm has significantly affected cattle imports from Mexico.
🔹 Drought conditions in Northern Mexico are leading to herd liquidation.
🔹 Retail beef prices are at record highs, influenced by supply and demand.
🔹 Consumer demand for beef remains strong despite high prices.
🔹 Beef imports are essential for stabilizing the market, particularly for ground beef.
🔹 Feeder cattle prices are experiencing volatility compared to futures prices.
🔹 Grazing conditions in the Southern Plains are deteriorating due to drought.
🔹 The cattle industry faces a slow recovery process due to ongoing drought challenges.
🔹 Future herd rebuilding may be delayed until 2028 due to current conditions.
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