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Invest In Production Land: Cattle Prices Getting Stronger

Written by Jerry Hicks, Ranch Broker  and Scott Hawes, Principal Broker, Oregon

Industry experts anticipate improved cattle prices for 2020.  It is believed that the US beef cattle herd expansion that began five years ago has run its course and is entering into a liquidation phase.  While it is anticipated that 2020 will see record beef production, the continuation of the longest US economic expansion in history continues to support domestic beef demand.

The effects of the African Swine Fever’s decimation of the Chinese hog herd is beginning to increase Chinese demand for US beef.  Further support for the US beef export demand is expected from the global protein shortage, new trade agreements with Japan and EU, and President Trump’s signing of the United States-Mexico-Canada Agreement, which still needs to be ratified by Canada.  If a trade agreement with China can come to fruition, even greater export demand can be anticipated.  2019 US dairy cow and beef cow slaughter was very large and is anticipated to be significantly lower in 2020, adding further support for US beef prices.  Corn and soybean acres are expected to regain acres lost due to the 2019 wet Spring and with normal yields, corn prices should decline.

Key variables for improved 2020 beef cattle prices yet hinge on the possibility of drought, the US corn, soybean and hay crops and the return to profitability for the feeding sector. It’s amazing to see how much the markets change on a 2-4% inventory move. Demand or perceived demand usually creates an upward move in market values. It does seem that the stars are in alignment for a better market just ahead.

Oregon Big Game Hunting 2020

It’s that time of the year to start considering your options for the upcoming big game fall hunts in Oregon. May 15th is the application deadline and I don’t know about you, but it always sneaks up on me! There are a few changes this year to make note of. In my opinion, here are […]

Montana Places To Live | Bitterroot Valley Lifestyle

Video blog by John Anderson, Broker Associate, licensed in MT, OR, ID It is truly difficult to describe the lifestyles of those fortunate enough to live in the Bitterroot Valley, except to say, “There is something for everyone.” If you seek isolation and the peaceful serenade of wind whispering in the forest, you’ll find it […]