It’s quite a “thing” we have! Record prices, short supplies, good demand, good hay supply, wheat pasture to graze, moisture falling or in the forecast, somewhat lower costs of gain, spring time almost here and living in the USA! Maybe there ought to be a song!
It is almost unbelievable what some of the cattle are bringing around the country! A few years ago $2.00 a pound for a calf was almost laughed at, but now yearling cattle are bringing it! It took several decades to reach $1.00 and almost no time to leave that in the dust! Almost every category of cattle, except cows and bulls, are closer to $200.00/cwt than $100.00!
Looking at the futures board, it is hard to say it’s a sellers market, but these are outstanding prices! If they will just hold up, and the moisture will come, those bred cows and pairs coming up for sale may be something to buy rather than sell. Time will tell.
Gains through the cold winter seem to have been pretty good, with the bulk of the wheat pasture cattle due to come in the next couple of weeks. It will be interesting to see how the big, fleshy cattle fair. As high as the futures board is, the basis for the big cattle seems to be completely out of whack.
Of course, since feeder cattle are settled on a cash basis, and not delivered, it is hard to tell how much actual market is in the futures. It is interesting to see how half the calf crops are heifers, almost half the slaughter cattle are heifers, and ALL the pregnant ones are females but yet they are not deliverable as a feeder or a fat on the futures.
It sure sounds like there are plenty of heifers already bred or being calved right now and many folks have gotten some moisture where they might be able to breed some more! It will be interesting to see how many more heifers this spring get sent to pasture instead of the feed yard!
The ebb and flow of the cattle cycle is interesting. Some weeks fly weights are popular, some weeks stocker weights are more popular and sometimes it seems like fats are more so! For 30 years cattle traded from $60.00 to $80.00, the next 15 they traded from $80.00 to $175.00! What will the market be for the next 10?
It sure looks like there are many opportunities around! Grazing wheat, raising beef and feeding the world all come to mind! Take advantage of the time, moisture and wheat pasture! Grass will be coming sooner than later!
Get in the action! Go to the auction! Raise some beef!
Buy and sell at the auction!