Last month, many of the BioZyme sales and marketing staff attending the Cattle Industry Convention in Houston. It was great to talk to so many customers and potential customers about our products. While there, CattleFax presented its annual market and weather forecast, which is typically right on target.
According to CattleFax, even with continued challenges and uncertainty from the pandemic, cattle price and profitability trends for producers are heading in the right direction. While issues around labor and packing capacity have lingered, both are expected to improve in the year ahead. Expansions in capacity combined with strong global and domestic consumer beef demand suggests increased profitability across segments, good news for our customers.
Kevin Good, vice president of industry relations and analysis at CattleFax, provided the following market forecast: Average 2022 fed steer price at $140/cwt., up $18/cwt. from 2021, with a range of $130-155/cwt. throughout the year. All cattle classes are expected to trade higher, and prices are expected to improve. The 800-lb steer price is expected to average $172/cwt. with a range of $158-184/cwt., and the 550-lb steer price is expected to average $205/cwt., with a range of $180-230/cwt. Finally, Good forecasted utility cows at an average of $75/cwt. with a range of $65-85/cwt. and bred cows at an average of $1,850/head with a range of $1,700-2,000 for load lots of quality, running-age cows.
The weather forecast isn’t quite as favorable as the cattle market with La Niña staying in control of the ocean-atmosphere system. For the U.S., barring any change to the La Niña outlook or sudden warming in the Gulf of Alaska, dryness continues across the Southwest and South with warms temperatures, too. The Northern Plains and Corn Belt are expected to have wetness farther east this spring and drier conditions for this summer, with temperatures closer to normal compared to last year.
As you know supply chain and transportation issues continue to challenge everyone in agriculture.
Look for more positive news next month, when hopefully we start to see some April showers!