Economist says he expects less volatility in the cattle market in 2022
A livestock economist says he’s taking a glass-half-full approach to the cattle markets.
Oklahoma State University’s Derrell Peel says ongoing drought conditions in parts of cattle country could set the tone for the industry in 2022. “By the end of the year, really by the January inventory numbers, we’ll have a sense of what the overall number situation looks like and the cow herd,” he says. Which will determine the feeder cattle supply for the next two to three years.
And his thoughts on the cattle markets in 2022? Peel tells Brownfield he’s ready for more stability. “Unless there is some new shock or some external factor jumps up at us, I think we might see these markets actually settle down,” he says. “And get into a little more of a stable, more ‘business as usual’, even though I’m not quite sure what that is. But a little less volatility in these markets.”
Peel also says he doesn’t expect any major changes to input costs next year.
AUDIO: Derrell Peel, Oklahoma State University