Cattle

Matt Kloes from North West Farm Credit Services gives us Market Snapshots that depict the general health of select agricultural industries in the Northwest. "Although volatile, cattle and beef prices reached record levels during the third quarter. Market bears are searching for signs of consumer resistance to high beef prices including increased substitution of less expensive pork and poultry. Bulls point to tight cattle and beef supplies, signs of improving U.S. economic conditions, and consumers' differentiation of beef as a protein of choice. The outlook for cattle markets remains favorable for the remainder of the year. Key factors to watch include expected increases in pork and poultry production and weak growth in the global economy that may pressure U.S. beef exports.

 

Northwest dairy producers' financial position has strengthened throughout 2014, supported by strong milk prices and lower feed costs. Domestically, milk prices are supported by good demand for, and low stocks of, cheese and butter. Meanwhile, international prices for dairy products are below U.S. prices. The U.S. is expected to be less competitive in export markets given a stronger dollar and increasing global milk production. As U.S. cheese and butter stocks rebound in 2015, domestic product prices are expected to track closer to global markets. Milk prices are expected to decline, providing a thin profit margin for most Northwest dairies."