CALF_News_April_May_2020

25 CALF News • April | May 2020 • www.calfnews.net Other industry factors to see this year include a rise in dairy cow numbers as milk prices improve. The U.S. economy is booming, indicat- ing good demand for beef, and fed cattle should trade in a narrow range. Per capita U.S. beef consumption is expected to rise to just over 58 pounds per person, the highest level in 10 years. Protein production is expected to increase by 2.8 percent over all species and increased meat exports are likely to give solid support to prices. Crops The ongoing struggle with China’s spreading coronavirus has the potential to create a panic in the global mar- ketplace. This situation can change on a daily basis and will simply be dealt with as it unfolds. 2019’s difficult weather has affected crops with late plant- ing, fewer acres planted and poorer yields. Most difficult to assess is last year’s soybean crop; the USDA is surveying producers again in an effort to make an accurate crop report. Soybean supplies are tighter going into 2020. Corn supply is expected to be adequate this year, with acres planted to increase by 4 million to 94 million acres. Soybeans will increase 7 million acres and wheat by 800,000. Of course, the U.S.- China trade deal is expected to increase all agricultural exports, additional upside is possible when ratification is reached. Long term outlook Blach returned to the podium to predict that all segments of the cattle industry will be profitable in 2020. Each beef animal is expected to generate an approximate $500 profit, to be split between all segments of the production line. He said the United States is entering a year of record beef production in 2020 with 35 million fewer head of cattle than we had in 1975. These beef cattle numbers are expected to remain stable, barring significant drought. On another optimistic note, the U.S. is expected to become the No.1 supplier of beef to Japan this year, due to the current administration’s aggressive trade negotiations. Kevin Good, CattleFax analyst, sees fed-cattle markets averaging about $120 per hundredweight this year. CAPITOL LAND & LIVESTOCK The Schwertner Select program is a health based program aimed at weaning a calf in its healthiest, natural environment. 254.527.3342 www.cllnet.com In business since 1946, we are committed to delivering quality, country fresh calves and yearlings on time at a guaranteed price. Schwertner Select Continued on page 31  Don Quincy, CattleFax president.