Feeder calf prices
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randiliana
Well-known member
One of the buyers here said it was that grain prices are going up.
Texan
Well-known member
Like Beefy said, it always happens with calves in October. Eighty-five degree days and 40 degree nights equals trouble. Calves get on a truck at 95 degrees, get off the truck 20 hours later at 25 degrees equals trouble.
Temperature fluctuations make buyers build in a little extra room for treatment. Some buyers will just pull their orders altogether because they don't want to wean your calves for you now. If you have to sell calves in October, you need to have them weaned and straightened out to get the most out of them.
Temperature fluctuations make buyers build in a little extra room for treatment. Some buyers will just pull their orders altogether because they don't want to wean your calves for you now. If you have to sell calves in October, you need to have them weaned and straightened out to get the most out of them.
stocky
Well-known member
The October sickness season, the price of corn is going up fast, and the droughts in so many parts of this country are pushing alot of light calves on the market because of lack of hay and feed. Also, there was an anouncement that the bad drought in Australia is causing a 75 percent loss of their wheat crop and wheat and corn has gone up every day since that anouncement, here.
I heard it was Argentines wheat crop failed.........
Maybe the cycle is settling back down so we are gonna see the fall rush drop prices again
Bout time -- you cow calf guys have had it too easy the last few years
Maybe the cycle is settling back down so we are gonna see the fall rush drop prices again
Bout time -- you cow calf guys have had it too easy the last few years
stocky
Well-known member
Howdy, I was thinking Australia, but I sure could be wrong. It would make more sense if it was Argentina
It's a combination of rising grain prices, the amount of calves coming to market, and the drought.
If you look at the wheat futures there is a wide spread between fall and next years new crop prices. Still pretty good through.
If you look at the wheat futures there is a wide spread between fall and next years new crop prices. Still pretty good through.
BC
Well-known member
Traditionally, October is the lowest month in terms of calf prices. The past 10 days the grain futures market has gone up. This affects the price that feeders can afford to pay for calves.
You also have to deal with health issues in calves at this time of the year. Warm days and cool nights cause sickness in these calves that have NOT been backgrounded and hardened up. Nothing worse than a fat bloomy calf in October.
You also have to deal with health issues in calves at this time of the year. Warm days and cool nights cause sickness in these calves that have NOT been backgrounded and hardened up. Nothing worse than a fat bloomy calf in October.
I like seeing high grain prices-- and I'll admit I'm being selfish
It makes more sense for feeders to stay out of feedlots and in backgrounding(or preconditioning) opperations with slower cheaper gains on grass.
The last few years- with young calves going straght to feedlots has been hurting($$$) our part of the business.
It makes more sense for feeders to stay out of feedlots and in backgrounding(or preconditioning) opperations with slower cheaper gains on grass.
The last few years- with young calves going straght to feedlots has been hurting($$$) our part of the business.
According to
http://charts3.barchart.com/chart.asp?v ... K&evnt=adv
this week was a bad one for feeder calf prices. I'm caught with some nice ones that need a new home and I sure hope it turns around soon.
gabby
http://charts3.barchart.com/chart.asp?v ... K&evnt=adv
this week was a bad one for feeder calf prices. I'm caught with some nice ones that need a new home and I sure hope it turns around soon.
gabby
Howdyjabo":1dzul8f1 said:I like seeing high grain prices-- and I'll admit I'm being selfish
It makes more sense for feeders to stay out of feedlots and in backgrounding(or preconditioning) opperations with slower cheaper gains on grass.
The last few years- with young calves going straght to feedlots has been hurting($$$) our part of the business.
If that is the case and I'm hurting your business let me ask you this question why do you want to hold the calves longer starve them so they are skinny. Then sell them to me and let me make the easy money with compensatory gain? That is profit that you give away to me. In dollars the feed inputs will never be greater than muscle outputs in dollars from cattle already owned.
You sold your cattle for less net dollars per head than you could have. In my mind that is what hurts your part of the business.
that post makes NO sense-.
But Maybe I need to clarify on my end--so here goes
Feedlots the last few years have been putting in weanlings instead of yearlings because the cost/animal has been so high and with the cheap grain prices they are making their money on---- more weight put on each individual animal.For example 400lbs to 1200+ = 800lbs+
compared to 800lbs to 1200+ = 400lbs+
Cost of grain goes up-- there is more value again in the backgrounded(ie heavier and older) animals.
Because the feedlots will again need the heavier animal to feed out fast and they won't be pushing the market on the smaller stuff.
I'm REALLY simplifying here but...............
I think people forget that there is only so much money to be made/animal in the commercial meat market. Beef has to compete with chicken and pork- so unless all go up at the same time the others can't individually raise their prices without looseing market share.
So There is very little "raise the end price" to compensate for increased costs. So it has to shift around between all the players. Cow/calf guy to preconditioners or backgrounders to feedlots. Most of the time this involves one of the levels to absorb the shortfall if one of the others gets the cream.
But Maybe I need to clarify on my end--so here goes
Feedlots the last few years have been putting in weanlings instead of yearlings because the cost/animal has been so high and with the cheap grain prices they are making their money on---- more weight put on each individual animal.For example 400lbs to 1200+ = 800lbs+
compared to 800lbs to 1200+ = 400lbs+
Cost of grain goes up-- there is more value again in the backgrounded(ie heavier and older) animals.
Because the feedlots will again need the heavier animal to feed out fast and they won't be pushing the market on the smaller stuff.
I'm REALLY simplifying here but...............
I think people forget that there is only so much money to be made/animal in the commercial meat market. Beef has to compete with chicken and pork- so unless all go up at the same time the others can't individually raise their prices without looseing market share.
So There is very little "raise the end price" to compensate for increased costs. So it has to shift around between all the players. Cow/calf guy to preconditioners or backgrounders to feedlots. Most of the time this involves one of the levels to absorb the shortfall if one of the others gets the cream.
john250
Well-known member
Howdyjabo":2h2qx5vv said:
Good explanation.
Glad it came out making sense
I have nothing against any one of the industry tiers getting the "cream" ---its part and parcel of the business.
It worries me when the balance stays off for too long--
When an agricultural business gets pressured too long and goes belly up- its hard to bring it back on line when needed again if its covered in concrete or houses.
And all three levels(cow/calf,backgrounders. and feedlots) are critical for long term stability of the industry-- loose share in any one and the whole industry suffers eventually.
I have nothing against any one of the industry tiers getting the "cream" ---its part and parcel of the business.
It worries me when the balance stays off for too long--
When an agricultural business gets pressured too long and goes belly up- its hard to bring it back on line when needed again if its covered in concrete or houses.
And all three levels(cow/calf,backgrounders. and feedlots) are critical for long term stability of the industry-- loose share in any one and the whole industry suffers eventually.
TheBullLady
Well-known member
If we can get some rain out of this system today and tomorrow I think we'll see feeders come way up next week. LOTS of acres of oats and wheat put in here speculating on putting calves on winter grazing. A friend that's an order buyer said by the end of October they (feeders) should be up considerably.
sjr725
Well-known member
I think up here in Montana, prices historically back off a little in the fall because that's when most guys are weanin and sell off their calves. We've contracted our calves the past few years - but at the sale ring you're now starting to see 300+ head of feeders go through when earlier in the summer you'd only see 5 or 6 - so when there aren't as many out there the prices go way up. Regardless, I'm glad for the contract price we got from selling on video auction back in June. We've used this method for the past 3 years and I think we've done much better. This year our heifer calves brought only .003 less than the steers! We kept back 60 of these good commercial heifers for replacement and a couple of steers for the freezer.
Susie David
Well-known member
Myself, I'm looking forward to the seasonal price decline as we usually but a load of steers this time of year but are going to wait a few weeks to see what the market does before we call on ranches. Could be left out in the cold with no cows and high prices. Have noticed that there have been fewer head being sold than in years past. I think that the rise in corn prices won't really show up until this spring with the new demand for calves.
Hope this makes sense, just rambling today...seems like fall weather makes my mind wander more than usual. DMc
Hope this makes sense, just rambling today...seems like fall weather makes my mind wander more than usual. DMc
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