Cattle market sees extraordinary trends amid price surges

By Andi Anderson

The cattle market is witnessing extraordinary trends, as highlighted by Oklahoma State University's Ag Economist Derrell Peel. Slaughter cow prices have surged, driven by record-high prices for 90 percent lean beef trimmings in early March, reaching $317.36 per cwt, the highest since records began in 1978.

This spike in prices comes amidst a decline in dairy and beef cow slaughter rates, with dairy cow slaughter down by 15 percent and beef cow slaughter by 11.4 percent year over year.

The dairy sector is also experiencing shifts, with a slight decrease in the dairy herd and dairy heifer replacements at the start of 2024. Factors such as rising feed prices have pressured milk producers, leading to a decrease in average milk cow inventories through 2023.

A late 2023 margin improvement may stabilize the dairy cow herd in 2024 despite lower dairy replacement heifer availability and reduced slaughter rates.

At the 2024 I-29 Moo University Dairy Beef Short Course, set to take place during the Central Plains Dairy Expo in Sioux Falls, South Dakota, Dr. Peel will discuss these dynamics further. His presentation will delve into cattle supply and demand fundamentals, price expectations, and the interplay between beef and dairy sectors.

The event will also feature presentations from other experts, including Dr. Ken Odde from Kansas State University, who will share findings from a video auction analysis of dairy x beef calves.

Dr. Bob Weaber, also from Kansas State University, will explore genetic considerations for maximizing calf value in beef x dairy crossing systems.

Lastly, Dr. Lauren Kimble from Select Sires will examine how beef x dairy cattle fit into value-based markets, offering insights for dairy producers aiming to thrive in a competitive beef market.

These discussions underscore the evolving landscape of the dairy and beef markets, providing vital information for producers looking to navigate the complexities of 2024 and beyond.

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