U.S. Beef Herds Will Expand in 2015

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One area of economic data I follow is where corn is being sold to. Recent data has pointed to farmers raising cattle which means an expanding beef market. I did some research and found this forecast at FarmandDairy.com:

U.S. Department of Agriculture semiannual report that cattle numbers have increased by slightly more than 1 percent following seven years of decline.
The most significant expansion has been in beef cows, which were up 2 percent from the previous year, the USDA said.
There were 610,000 new beef cows added nationally. Hurt said the expansion is likely to continue through most of this decade.


One reason for the expansion is prices farmers are getting for beef:

“These were led by record-high cattle prices in 2014 with finished cattle averaging near $155 per live hundredweight and Oklahoma 500-550 pound steer calves averaging $250,” Hurt said.

Oil Rig Production Continues Plunge

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Oil rig production continues its plunge and gas prices are starting to show that. Here is the latest data on oil rigs:

The number of active U.S. land rigs plunged by 98 this week in one of the biggest declines in the past three decades as fallen oil prices continued to pummel the industry’s drilling ambitions.

Baker Hughes’ 71-year-old U.S. rig count, one of the industry’s go-to indicators of future oil production and demand for rigs, was down by 406 drilling units compared to Feb. 13, 2014. The last time the rig count fell by 98 was in January, 2009 – the two declines are tied for the biggest drops since 1987.

H/T Fuel Fix