Cattle Markets: Opportunities ahead for producers

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Keep it simple.  Most things are simple, with the exception of understanding humans.  Markets are made of up buyers and sellers, the rain comes down, the wind blows, the sun rises in the east and water flows downhill. 

It is amazing how hard people try to make things. A look at the United States tax code and law books would make a person wonder how they can come up with some of those laws.  Even though it is just tax, it sure can make a person think those folks on the coasts making them might not be playing with a full deck.

The cattle market is usually simple, until you take the cattle and the cattleman out of it.  If there is feed and water then a person can run cattle, it there isn’t then something different has to be done.  You sure don’t see many computers laying in the pastures, but they sure seem to have an effect on the futures markets. Apparently it only takes a few seconds for some computers to knock a market down, or take it up, even though it takes almost two years to get a calf from birth to the market.

Is the cattle herd smaller? If a person counted the cows in New Mexico, Colorado, Texas and other drought stricken areas the answer would certainly be yes, but if the head counts of some of the government reports were looked at, there might be more. It appears like there is enough beef being produced, and at extremely high prices!

It sure looks like everything is high. Cutout values are at all time highs, the dow-jones hit an all time high, government spending is at all time highs, media “reporting” is at all time highs, and just about every other thing except common sense and rain measurements seem to be at “all time highs”.

Maybe there will be a high time for opportunities also!  It has rained in places, there is some pond water in places, summer is about here and there are definitely people who need to eat!  Most everything in the agriculture world seems to be about a month behind.  Corn planting, grass season, wheat harvest and spring are all a little behind, but that can change!

Take advantage of those young pairs being offered!  Many of them are bringing the same price as when the calves were only worth $90.00 and the cows were only worth $40.00!  It seems pretty simple, buy something of value at a low price and be able to sell it at a high price!

Take advantage of the opportunities coming up!

Go to the auction! Get in the action! Raise some cattle!

www.cattleusa.com

P.S.  Pray for some more moisture!



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