Randy Blach, CEO of CattleFax, told producers at the National Cattlemens Beef Association annual convention today (Jan. 29) that it will be important to stay plugged in this year. Volatility is here to stay and producers need to watch closely for market opportunities.
During the annual CattleFax Outlook Seminar Blach told cattlemen that competition from within the market will remain fierce in 2010. This will keep margins thin for margin operators regardless of the price level that cattle and beef are trading at this year.
Kevin Good, CattleFax analyst, said 2010 should be positive for the feedlot segment of the livestock business, it should be positive for the stocker/backgrounder segment which will be the most profitable area of the industry in 2010, but it will be marginal for cow/calf producers.
Exports could be the bright spot for the beef industry in 2010. Brett Stuart said beef exports from the U.S. could be up 8 percent in 2010. U.S beef exports will be up significantly in Japan and South Korea. This will be the third straight year of global meat production declines.
Creating sufficient beef demand is still the main challenge. The food service sector continues to struggle as the economy is slow to recover and exports still face challenges with access to markets.
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