BUDGETS: cow calf, backgrounding, summer grazing

LMIC: Analysis and Comments, In the Cattle Market, Livestock Monitor

MARKET REPORTS: area market reports

PRESENTATIONS: meeting presentations

LEASE PUBLICATIONS - farm and ranch

Chart of the Month

The cattle price situation changed abruptly and dramatically in one month. In mid-Feb. supply and demand fundamentals indicated fall 2020 calf prices would be higher, up to 2018 or higher levels. The US economy was strong with a record high stock market on Feb. 12. Record 2020 beef exports were expected as trade agreements with top beef customers- Japan, Korea, Mexico, and Canada- took effect; and a Phase 1 agreement was ratified with China. African Swine Fever caused a deficit in World pork production, especially in China. The US beef cow herd peaked in 2018, so a smaller 2020 calf crop was supportive to prices.  USDA’s first 2020 corn crop projection was a record high 15.46 billion bushels, and good pasture conditions also were also supportive to calf prices. However, as news of COVID-19 pandemic surfaced, global financial and commodity markets including beef and cattle crashed. No one knows how long the COVID-19 scare will last and how severe it will be in the World and US. The best-case scenario is that it can be contained after a couple months and impacted markets can start to rebound. The worst case would be that the hysteria lingers for months. Expect extremely volatile markets!