CattleFax update at NCBA convention

Randy Blach, CattleFax CEO, and his staff gave their annual cattle market update to a packed house the Cattle Industry Convention in Nashville, Tn. As the U.S. begins to rebuild its cow herd Blach said cow/calf producers will be in the drivers seat. (Journal photo by Doug Rich.)

If you had trouble getting a cell phone connection at around 10:00 a.m. CST today blame it on the Cattle Industry Convention in Nashville, Tn. The CattleFax Update concluded about that time and every cowboy in the room was calling back home with orders to buy or sell depending on their position in the cattle market.

The news was bullish for cow/calf producers. Randy Blach, CattleFax CEO, said cow/calf producers will be in the drivers seat for the next few years as the U.S. cow herd begins to rebuild from record low numbers. Shrinking cattle supplies and higher input costs could mean consolidation in the feedlot and packing industries.

“We will grow the herd no doubt if we get enough moisture,” Blach said.

Art Douglas said world weather patterns have started to shift away from La Nina to El Nino. Douglas said very warm temperatures will continue through February for much of the U.S. Expect cool, wet conditions in the Midwest this spring which could lead to late planting and delayed maturity of the corn crop if those conditions persist through the summer months.

The big variable in the price of corn continues to be ethanol. The export market for U.S. produced ethanol will continue to grow for the next few years putting additional pressure on corn supply to use ratios. According to CattleFax, corn will win the battle for acres and expand to 94 million acres in 2012.

You may now assume normal cell phone activity.

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Categories: cattlemans college, Convention News, Featured News

Author:dougnrich

Senior Field Editor, High Plains/Midwest Ag Journal.

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