Interesting observation

[Dave]

So last week I was in Winnemucca at the Superior Livestock sale. I believe it was on Thursday the calves started pretty good and then prices fell off mid day. Then toward the end of the day they picked back up. Several of us were talking to one of the people from Superior about this. He pointed out that the buyers who were at the sale in person had computers set up so while they were buying they were also watching the futures market. And when they bought a load of cattle they were hedging them right there and then. So if the futures market dropped during the day so did the price paid at the auction.

 

[HDRider]

We live in a different world than Dad.

 

[Cross-7]

Futures market limit is 4.5 cents per day
Shouldn't make a lot of price difference
1-4 cents either way

 

[kenny thomas]

Futures market limit is 4.5 cents per day
Shouldn't make a lot of price difference
1-4 cents either way

That is on big cattle, let the futures market slide 4.5 cents tomorrow and 400-500 lb calves will drop 10-15 cents. It kills the market. It is a main reason the prices are what they are today and the only reason they were too high. Never should have gotten so high and should not have dropped so bad.
You know that while Dave was watching the sale that the supply nor the demand changed enough to change the market, its all in the paper trading.

 

[js1234]

So last week I was in Winnemucca at the Superior Livestock sale. I believe it was on Thursday the calves started pretty good and then prices fell off mid day. Then toward the end of the day they picked back up. Several of us were talking to one of the people from Superior about this. He pointed out that the buyers who were at the sale in person had computers set up so while they were buying they were also watching the futures market. And when they bought a load of cattle they were hedging them right there and then. So if the futures market dropped during the day so did the price paid at the auction.

Wish we had touched base, I flew down from Wyoming for Thursday and Friday. Got a pretty decent jag of 2 season type Fall delivery calves bought.

 

[Dave]

So last week I was in Winnemucca at the Superior Livestock sale. I believe it was on Thursday the calves started pretty good and then prices fell off mid day. Then toward the end of the day they picked back up. Several of us were talking to one of the people from Superior about this. He pointed out that the buyers who were at the sale in person had computers set up so while they were buying they were also watching the futures market. And when they bought a load of cattle they were hedging them right there and then. So if the futures market dropped during the day so did the price paid at the auction.

Wish we had touched base, I flew down from Wyoming for Thursday and Friday. Got a pretty decent jag of 2 season type Fall delivery calves bought.

I too wish we would touched base. I was there Thursday afternoon and all day Friday. I thought those light desert calves sold pretty good on Friday morning. The bred heifers were an exercise in PO. It is too early to be selling bred heifers. But we were going down to see the wife's daughter who lives there so I went ahead and put them on the sale.

 

[js1234]

It seems that many buyers, including several of the big corporates have come alive in terms of buying Fall delivery yearlings this past week. We sold a big string of our own yearlings in Wyoming for basically 9/15 delivery, steers weighing 925lbs., $147/cwt. steers weighing 850lbs., $152/cwt. yesterday. I bought a bunch of spayed heifers today on order for a customer we buy for, $141/cwt., at 875lbs. in Nebraska from a good ranch that I have bought cattle from 4 or 5 times over the last 6 or 7 years.
In the last 3 days I've probably had 4 calls from prospective buyers about Fall delivery yearlings of our own we have yet to market and I've got another customer that needs us to get a lot of big yearlings bought to deliver in the next 30-40 days for him.

 

[dieselbeef]

buyers go to lunch and the ones there get em cheaper...