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BRUBAKER Cattle Trends!
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<blockquote data-quote="DOC HARRIS" data-source="post: 847127" data-attributes="member: 1683"><p>This report appeared today, and I would welcome OPINIONS of the report, and perhaps '<em>regrets</em>' for ignoring admonitions from this corner four years ago when the subject of <em><strong>increasing</strong></em> the numbers and quality of one's breeding herd to take advantage of anticipated increased demand several years in the future was being suggested and encouraged! There were many excuses for procrastinating upgrading one's herd, but few justifiable <strong>reasons!</strong> </p><p></p><p>This is <em>another</em> opportunity to consider the future of your business protocols!</p><p></p><p>DON'T GET ME STARTED!</p><p></p><p>DOC HARRIS</p><p></p><p></p><p>Cattle Trends</p><p>If you study price trending in the cattle markets since fall of 2010 you are aware that cattle prices are at an all-time high in all segments of the industry.</p><p></p><p>Terminal prices for fats and feeders are driving the market. This is largely due to the lack of cattle numbers throughout the country. We see this trend continuing over the next several years, as pressures on the cattle population continue. Drought, lower rentention of replacements, land development and a decline in younger generations taking over farms & ranches will continue to slow the population growth.</p><p></p><p>This is simply economics 101, Supply & Demand,. Demand for beef products remains steady with some growth in certain segments. When supply is down and demand is steady to higher, prices rise and the market becomes more stable.</p><p></p><p>The amazing part of this market structure is it is all happening when feed costs reach new highs. Historically, when feed costs rise cattle prices decline. Cattle prices rising while feed inputs rise is a trend not seen in recent history.</p><p></p><p>The more you can control your inputs the greater profits you will make in this market. Control your inputs through genetics and management. Select genetics that are capable of providing growth, muscle and milk on grass (your cheapest feed resource) and hay. Utilize the sun, rain and soil to provide the ingredients to produce more pounds of beef per acre, without or with limited use of high cost feed</p></blockquote><p></p>
[QUOTE="DOC HARRIS, post: 847127, member: 1683"] This report appeared today, and I would welcome OPINIONS of the report, and perhaps '[i]regrets[/i]' for ignoring admonitions from this corner four years ago when the subject of [i][b]increasing[/b][/i] the numbers and quality of one's breeding herd to take advantage of anticipated increased demand several years in the future was being suggested and encouraged! There were many excuses for procrastinating upgrading one's herd, but few justifiable [b]reasons![/b] This is [i]another[/i] opportunity to consider the future of your business protocols! DON'T GET ME STARTED! DOC HARRIS Cattle Trends If you study price trending in the cattle markets since fall of 2010 you are aware that cattle prices are at an all-time high in all segments of the industry. Terminal prices for fats and feeders are driving the market. This is largely due to the lack of cattle numbers throughout the country. We see this trend continuing over the next several years, as pressures on the cattle population continue. Drought, lower rentention of replacements, land development and a decline in younger generations taking over farms & ranches will continue to slow the population growth. This is simply economics 101, Supply & Demand,. Demand for beef products remains steady with some growth in certain segments. When supply is down and demand is steady to higher, prices rise and the market becomes more stable. The amazing part of this market structure is it is all happening when feed costs reach new highs. Historically, when feed costs rise cattle prices decline. Cattle prices rising while feed inputs rise is a trend not seen in recent history. The more you can control your inputs the greater profits you will make in this market. Control your inputs through genetics and management. Select genetics that are capable of providing growth, muscle and milk on grass (your cheapest feed resource) and hay. Utilize the sun, rain and soil to provide the ingredients to produce more pounds of beef per acre, without or with limited use of high cost feed [/QUOTE]
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