Calf and Yearling Prices

[Stocker Steve]

In this area it seems that the price of yearlings just keeps dropping, but the price of 4 or 5 wt calves has stayed pretty strong. Are folks betting on some future price or is it just a matter of time before the cow/calf prices take a dive?

 

[tom4018]

Light heifers seem to be good here. You can make as much on a 450 as you can a 550. Here is a report.

Ky-Tenn Livestock Market, Guthrie, KY (cattle weighed at time of arrival)
Receipts: 1,643 head.
Compared to last week: Slaughter cows 2.00 higher. Slaughter bulls 4.00
higher. Feeder steers and heifers steady to 3.00 higher.
Slaughter Cows:
Percent Lean Weight Avg-Dress Hi-Dress
Breaker 75-80 1000-1678 46.00-53.00 55.00-00.00
Boner 80-85 900-1278 41.00-48.50
Lean 85-90 780-1100 32.50-38.00
Slaughter Bulls
Y.G. Weights Carcass Boning Percent Price
1 1645 78-79 62.00
2 1275-2000 76-77 53.00-58.00
Feeder Steers Medium and Large 1-2
Head Wt Range Avg Wt Price Range Avg Price
13 200-300 274 121.00-129.00 127.70
31 300-400 344 116.00-123.50 119.77
34 400-500 448 122.00-125.00 122.24
101 500-600 579 109.50-116.75 115.94
25 600-700 638 95.00-100.00 98.25
83 600-700 641 107.00-107.75 107.50 Value Enhanced
23 700-800 722 85.00-90.00 88.37
42 700-800 736 99.00 99.00 Value Enhanced
3 800-900 808 85.00 85.00
Groups:
31 head 452 lbs 122.00 BBWF 54 head 651 lbs 107.75 BLK
89 head 548 lbs 116.75 BLK 42 head 736 lbs 99.00 MIX
29 head 621 lbs 107.00 MIX
Feeder Steers Medium and Large 2
Head Wt Range Avg Wt Price Range Avg Price
3 200-300 273 110.00-118.00 115.27
11 300-400 364 97.00-114.00 106.96
37 400-500 448 102.00-116.00 112.44
13 500-600 538 106.00 106.00
Feeder Steers Small and Medium 1
Head Wt Range Avg Wt Price Range Avg Price
1 600-700 695 79.00 79.00
Feeder Holstein Steers Large 3
Head Wt Range Avg Wt Price Range Avg Price
10 400-500 405 66.50 66.50
1 500-600 500 58.00 58.00
9 700-800 725 62.50 62.50
Feeder Heifers Medium and Large 1-2
Head Wt Range Avg Wt Price Range Avg Price
15 200-300 240 109.00-116.00 111.97
46 300-400 352 108.00-117.00 114.91
161 400-500 452 109.00-113.00 112.19
114 500-600 540 91.75-97.00 94.51
66 500-600 569 98.00-101.75 100.53 Value Enhanced
39 600-700 637 88.75-91.25 90.54
37 600-700 620 98.25 98.25 Value Enhanced
17 700-800 707 82.00-83.75 82.92
Groups:
25 head 362 lbs 117.00 BBWF 58 head 543 lbs 97.00 BBWF
23 head 430 lbs 109.00 BBWF 45 head 563 lbs 101.75 BLK
25 head 435 lbs 113.00 MIX 21 head 581 lbs 98.00 BLK
77 head 465 lbs 113.00 BBWF 37 head 619 lbs 98.25 BLK
37 head 532 lbs 92.00 SIM-RD 28 head 634 lbs 91.25 BLK
Feeder Heifers Medium and Large 2
Head Wt Range Avg Wt Price Range Avg Price
15 300-400 347 101.00-114.00 104.81
20 400-500 455 99.00-106.00 99.77
3 500-600 530 94.50 94.50
6 600-700 628 84.00 84.00
3 700-800 725 81.00 81.00
Feeder Heifers Small and Medium 1
Head Wt Range Avg Wt Price Range Avg Price
2 400-500 458 94.00 94.00
8 500-600 544 75.00-79.00 75.92
5 600-700 669 77.50 77.50
4 800-900 844 78.00 78.00
Feeder Bulls Medium and Large 1-2
Head Wt Range Avg Wt Price Range Avg Price
31 300-400 373 115.00-117.00 116.95
105 400-500 453 108.00-112.50 109.71
79 500-600 543 105.00-110.50 109.45
25 600-700 634 94.00 94.00
12 700-800 719 81.50-90.00 87.55
Groups:
30 head 375 lbs 117.00 BLK 64 head 542 lbs 110.50 BBWF
21 head 442 lbs 108.00 CHAR-X 25 head 634 lbs 94.00 BLK
77 head 455 lbs 110.00 BBWF
Feeder Bulls Medium and Large 2
Head Wt Range Avg Wt Price Range Avg Price
7 400-500 435 96.00-104.00 100.71
10 500-600 554 92.00-100.00 97.83
Feeder Bulls Small and Medium 1
Head Wt Range Avg Wt Price Range Avg Price
7 400-500 425 109.00 109.00
5 500-600 513 90.00-91.00 90.22
1 600-700 620 82.00 82.00
Stock cows and Calves: Medium and Large 1-2: Cows 4 to 7 years old with 75 to
200 pound calves at side 575.00-925.00 per pair.
Stock cows: Medium and Large 1-2. Heifers 4 to 7 months bred 485.00-750.00
per head. Cows 3 to 9 years old and 3 to 7 months bred 525.00-975.00 per
head.
Baby Calves: Beef: 70.00-135.00 per head. Weaned: 180.00-220.00 per head.

 

[somn]

In this area it seems that the price of yearlings just keeps dropping, but the price of 4 or 5 wt calves has stayed pretty strong. Are folks betting on some future price or is it just a matter of time before the cow/calf prices take a dive?

As I responded in another post about the same subject the market for 5 weights will remain steady as long as a working put can be bought. When that can no longer happen these weights will also go into the gutter.

 

[tom4018]

In this area it seems that the price of yearlings just keeps dropping, but the price of 4 or 5 wt calves has stayed pretty strong. Are folks betting on some future price or is it just a matter of time before the cow/calf prices take a dive?

As I responded in another post about the same subject the market for 5 weights will remain steady as long as a working put can be bought. When that can no longer happen these weights will also go into the gutter.

What would cause you not to be able to buy a"working put"? I don't understand the term so an explanation might help me.

Talking with a friend of mine last night that is a buyer/trader or whatever you call him. He says there is nothing keeping prices at the level they are now, he feels the bottom could fall out anytime. With fuel, fertilizer and feed prices so high I could see the effect these have on profit but don't see how we can make a profit if prices drop.

 

[somn]

Well when all the expenses are greater than the put it will no longer work. Regardless of cash prices using puts and calls you will still stay above water on 5 weights. Monday could be completely different story. That could be the end to the 5 weights. It is anyones guess.

 

[jbar]

there wanting the smaller cattle to background and get ready for wheat pasture/grass green up?

lots of profit in the market if you know where to look but it changings week to week/season to season gotta stay flexable.sell when what you have is worth more.buy back at a profit.


please explain puts and calls. dont know what they are.

 

[somn]

puts and calls are 2 forms of options. They are used to manage risks for the cattle producer.

 

[Stocker Steve]

Well when all the expenses are greater than the put it will no longer work. Regardless of cash prices using puts and calls you will still stay above water on 5 weights. Monday could be completely different story. That could be the end to the 5 weights. It is anyones guess.

I realize a put is an option that can protects you from price declines. I have not been using puts and calls in the past. I have sold cattle for future delivery, which obviously prevents any potential price upside. What are the other pros and cons of using a put vs. selling for future delivery?

 

[Stocker Steve]

Well when all the expenses are greater than the put it will no longer work. Regardless of cash prices using puts and calls you will still stay above water on 5 weights. Monday could be completely different story. That could be the end to the 5 weights. It is anyones guess.

I realize a put is an option that protects you from additional price decline at some point. I have not been using puts and calls in the past. I have sold cattle for future delivery - - which does not require me to pay a premium, and obviously prevents both potential price upside and downside.
What are the other pros and cons of using a put vs. selling for future delivery?

 

[somn]

I realize a put is an option that protects you from additional price decline at some point. I have not been using puts and calls in the past. I have sold cattle for future delivery - - which does not require me to pay a premium, and obviously prevents both potential price upside and downside.
What are the other pros and cons of using a put vs. selling for future delivery?

Cash contracts and futures contracts will leave you with the same end result. X amount of Dollars. It never gets any better and it never gets any worse. Cash contracts are the cheapest risk managment tool available. Futures contracts can get real expensive for a period of time. But as long as you and your banker feel comfortable making margin calls until you sell the underlying commodity that is also an effective risk managment tool. I don't like making margin calls just so I can sell my commodity at said price. I would rather pay the premium for an put include that amount in my cost of production like I always do thus giving me the option to make more money than I could have with a futures contract. I have the option to make more money than I could with a futures contract that is the path I choose. Everybody does things differently.

 

[mnmtranching]

Calf prices have only been steady the last few weeks.

Sept and Oct good 500 pound calves off the cow would bring 1.40. Last week it took a very good group to get 1.15.

 

[FarmGirl10]

tom4018 do you have Bluegrass Stockyards report?

 

[dyates]

http://marketnews.usda.gov/gear/browseb ... _LS145.TXT

I hope this link works. It's to bluegrass weekly summary. Calf prices having been steadily increasing here for the last three weeks, more on the light weights. Seven-eight weights are coming up now also. Slaughter cows and bulls are through the roof. Slaughter cows went as high as $.625 and bulls as high as $.775. :shock: That's awfully high for here.

 

[bigbull338]

i think the calf prices are pretty good in our area.sent 2 600lb bulls an 1 1125lb cull cow to the sale.the 615lb calf brought .89 cents a lb.sent a 600 hol X beef bull an got .60 a lb for him.now mind you he looked just like a hol.the 1125lb cull cow brought $57.50/100lbs.all in all i think the prices where good.

 

[Susie David]

Compared to our prices yours were quite a bit higher on light steers and slightly lower on heifers, the big steers are about the same money.
Been tracking pirces for awhile now and I haven't noticed any big decline...but it is early in the year and we're about at last years dollars. The number of head going through is slightly less but bad weather could have kept alot of animals back on the ranch. Hay stocks are low and I know alot of folks including us that culled pretty hard last fall because of the drought. So far it looks as if we are going to be OK this year with record snow fall and talk about a early spring, so I suspect that the price of the 4-5 wt steers will hold if not go up. Just when we're looking to restock...oh well, didn't have the hay to winter alot of animals.
Just my two bits worth....DMc

 

[Stocker Steve]

Yearling are now running $0.80 to $0.90 per pound
Last August they were $1.12 to $1.15 per pound...
Thats about $270 per head less.

 

[JMichal]

Ouch!!! 100 head hurts bad. It should come up by April, usually does. It may be a good spring to buy some backgrounders, if a person has enough pasture.

 

[gerardplauche]

I'm thinking that prices will get back to normal by April. In Louisiana, calf prices are already on the rise now. I think it's because we had no winter whatsoever (except for the rain). Calf prices are averaging $1.15 here. I picked up a young bull calf recently for $1.40/lb :shock: