Articles

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 are 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.



FRCF donates to Power River 4 H

FRCF Donates to Powder River 4-H in Honor of Victor Rue

By Susan Ferrin, Executive Director, Fay Ranches Community Foundation In November the Fay Ranches Community Foundation donated to the Powder River 4-H in honor of the late Victor Rue. Victor, the father of Fay Ranches agent, Kebi Smith, was involved in his local 4-H program from a young age. He raised his family for many […]

November 2022 Market Update

By Greg Fay, Founder, Broker, Licensed in MT Two thousand twenty-two marks the 30th anniversary of Fay Ranches and ten years since we forged our Strategic Alliance with Republic Ranches. Thirty years certainly signifies our ability to weather some storms and grow with discipline. I feel like we’re just getting started, and I’m having more […]