Thousands of farmers and ranchers are participating in the American Farm Bureau Federation’s Convention this week. In one workshop, experts weighed in on the cattle market outlook.
Dr. Derrell Peel from Oklahoma State University says that factors to watch in 2021 include the pace and extent of pandemic control, macroeconomic conditions, global protein markets, drought conditions, and feed market prices.
Here is what he says to expect this year: “On an average annual basis, the price forecast, as of the end of December basically, what we’re looking at for 2021... is an expectation for modestly stronger prices on average in 2021. I would put them in the range of 5 to 8 or 9 percent. I think that there is a chance that we could do a little better than that, particularly in the second half of the year.”
Dr. Peel says that the first two quarters of 2021 will likely hold many challenges, much like 2020, but the second half of the year should see movement pick up significantly.
