By Andi Anderson
Cattle markets in the Southern Plains and Southeast are facing an early summer decline, with prices falling faster than expected. This trend is affecting both calves and feeder cattle, creating concern among farmers and livestock producers.
In Oklahoma, the price of 400 to 500-pound steers has dropped significantly since April. It decreased from about $570 per hundredweight to $519 by mid-June. Similarly, prices for 700 to 800-pound steers declined by around $15 per hundredweight during the same period.
The Southeast region is showing a similar pattern. In Georgia, prices for lighter steers dropped by about $51 per hundredweight compared to mid-April. Prices for heavier feeder cattle also decreased, though at a smaller rate.
Typically, calf prices see only a small seasonal decline of about 2 to 3 percent from April to June. On the other hand, feeder cattle prices usually rise during this period and reach their peak by August. However, this year, both categories have shown unexpected weakness, indicating the influence of other factors.
One major reason for the decline is drought. Although some parts of Texas, Oklahoma, and Arkansas have received rainfall, pasture conditions remain poor in many areas. Around 29 percent of pasture in both the Southeast and Southern Plains is rated poor to very poor, which is higher than last year. In the Great Plains, the situation is worse, with nearly half of the pasture in poor condition.
Due to these conditions, farmers are selling more cattle earlier than usual. As a result, the supply of feeder cattle has increased. Reports show that stocker and feeder cattle receipts in May were 7 percent higher compared to the previous year. This higher supply has put pressure on market prices.
Another factor affecting the market is the presence of New World Screwworm. While its exact impact is difficult to measure, it has influenced market expectations and futures trading.
Photo Credit: gettyimages-peopleimages
Categories: Ohio, Livestock