To Graze Or Not To Graze Cattle, That Is The Question

Oct 13, 2016
To Graze or Not to Graze Cattle, That is the Question
 
The big question for producers right now is whether or not any money can be made this fall and winter, grazing cattle out on wheat pasture. Oklahoma State University Livestock Market Economist Dr. Derrell Peel has advocated that the potential for profitable margins for producers using this strategy since late summer. However, several factors are causing him to be less confident about his hypothesis. Farm Director Ron Hays reached out to Dr. Peel to find out why. He attributes the fact that there are simply too many unknowns yet to be answered, given the many uncertainties in the cattle market at this time.
 
“Despite the fact that we got off to a pretty early jump on wheat planting and early emergence of wheat, I think the demand for wheat pasture cattle has been slower to develop,” Peel said, citing possible fears like wheat crop failures due to Army worms, for instance. “I think the bigger problem of course is just that the beef market and feeder cattle market in particular, has really been running scared for the last couple months.”
 
Dr. Peel says because of all this, producers are approaching things very cautiously, waiting to see how the market develops. He insists that confidence would bolster if the market were to find a bottom, potentially ushering in a fair buying opportunity. As of now though, producers and their lenders both seem to be waiting; nervous about jumping in too quickly.
 
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