Market Report - June 2, 2023

Cattle Market Report:

What a ride. The last two weeks have been impressive to watch to say the least. I would anticipate another correction in the next few weeks, but I agree with most analysts I have been reading that there is certainly still upside potential to the markets. I know that input costs have sharply increased for everyone across the industry, but there should certainly be profit in these prices for our ranchers. A lot of people are still talking about consumer spending habits. I anticipate beef demand will stay strong at least through the 4^th if not through July as a whole. Unemployment is down, and there seems to be a stay in the interest rate hikes for now which has consumers feeling good. 

Look at your finances. This ride could easily last for 3 or more years depending on expansion. Make a plan and be wise. I certainly think that now is a good time to be discussing LRP with your agents. 

Grain Market Report:

Grains had a bit of a ride again the last two weeks as corn and soybeans dropped sharply early on but have rebounded and are up. I get the impression that corn and soybean markets are still trying to figure out crop expectations. Later contracts are trading lower than current contracts which seems to support the positive outlook I have been hearing about this year’s yields. This will be beneficial for the cattle market, although inputs are still high for feeders. 

Cattle and Grain Markets for June 2, 2023

Sheep Market Report:

The sheep market San Angelo was mostly steady to higher last week. Hamilton, and Goldthwaite were $5-10 higher and Fredericksburg was steady. The USDA estimated domestic lamb and mutton meat production for the week ending May 27th totaled 2.15 million pounds on a 33,000 head slaughter this week compared to 2.24 million pounds and 35,000 head the previous week. Imported lamb and mutton meat for the week ending May 20th totaled 4.88 million pounds which is 218 percent of the domestic production for the same period.

Sheep markets for week ending June 2nd, 2023

Hay Market Report:

Moisture can be a double-edged sword. Producers across the Great Basin are seeing afternoon thunderstorms on a regular basis. This provides needed moisture, but also delays harvest. Heavier rainfall is also leading to some issues along the front range of Colorado and into Nebraska over the last few weeks. Exporters are indicating lower demand. Dairies are still hesitant to buy. 

*Ross Bronson and Redd Summit Advisors are not financial advisors, and this market report is in no way intended to provide financial advice. This commentary is merely meant to be insight and input about current market conditions. It is recommended that any market commentary be compared to your own trusted sources, experience, and market evaluation. Especially those that are more specific to your regional market dynamics. 

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