Open Heifer Pricing ?

[Stocker Steve]

We are seeing the bigger high 7s low 8s feeder heifers are selling for U$S 1,000-1,100 per head. Plain heavy bred heifers had been about $1,200, so fleshy ones are now going to kill.

What are you seeing for a price spread, and how is this effecting your heifer development plans?

 

[TCRanch]

 

[KAstocker]

I don't have any heifer development plans, but I have noticed about the same price spread. A lot cheaper to buy bred heifers than it is to make them right now.

 

[EasTex]

 

[Stocker Steve]

I don't have any heifer development plans, but I have noticed about the same price spread. A lot cheaper to buy bred heifers than it is to make them right now.

With low soil moisture and high N costs - - I don't think hay prices here will come down for a couple years.

I do think making bred heifers pay is difficult during a drought, so I'm figurin on a new plan.

Really don't want to send heifers to a feedlot after paying up for cow maker bulls, but selling calves and hay makes most cents unless one gambles on a big bred price bounce.

 

[Dave]

The neighbor bought and bred about 300 heifers last year. He told me that the opens sold for $1,200 a head to the feedlots. He got $1,400 each for the bred ones.

 

[Stocker Steve]

The neighbor bought and bred about 300 heifers last year. He told me that the opens sold for $1,200 a head to the feedlots. He got $1,400 each for the bred ones.

I sold fancy bred heifers off the farm last spring for U$S 1600. Feed was a lot cheaper, so I make some money on them.

Bred heifer market here has come up since fall. Top heifers at sales barn are now $1450 to $1550. Bottom cut is $ 950 to 1000.

 

[KAstocker]

I do think making bred heifers pay is difficult during a drought, so I'm figurin on a new plan.

Sell fat older cows and replace with cheap bred heifers for about the same price? I know it's best to stick with the current market and not guess, but it seems like drought rebuilding and the feeder market sky high in the future is going to cause some young bred cows to be expensive in the next year or three.

 

[Stocker Steve]

Great suggestion! When you factor in the amount of feed consumed by a big cow vs. a bred heifer - - it can be a profitable trade.

Some producers are hell bent on "saving" all their older cows from this drought, but many of these cows will still end up as burger before we hit the next price cycle peak.

 

[Travlr]

Sell fat older cows and replace with cheap bred heifers for about the same price? I know it's best to stick with the current market and not guess, but it seems like drought rebuilding and the feeder market sky high in the future is going to cause some young bred cows to be expensive in the next year or three.

I have a different take on it. I've bought older, proven cows to raise replacement heifers for sale. Broken and smooth mouth cows that would raise a good calf and stay in good condition. Get three or four calves out of them and sell them for what I paid. In the meantime selling their daughters for more than what the cow cost. And so little calving problems with old cows compared to heifers. The only problem with older cows is you have to watch them for condition, and that's easy.
Heifers are prettier, but so many more problems.

 

[Stocker Steve]

Heifers are prettier, but so many more problems.

Dave will like your approach, but the feed cost is higher for the bigger female.

Some heifers are a problem - - but I try not to buy too many, so I can turn the problems into freezer beef at a profit.

 

[Stocker Steve]

Cow prices were up again today. Highlight of the sale was four pots of BM Dakota cows. Dave would have had a lot of fun.

I sold my most inefficient running age cows for U$S 1250. Bought back bred heifers for $ 1025. Hard to raise um for that. We'll see how many become freezer beef heiferettes.

 

[Dave]

Cow prices were up again today. Highlight of the sale was four pots of BM Dakota cows. Dave would have had a lot of fun.

I sold my most inefficient running age cows for U$S 1250. Bought back bred heifers for $ 1025. Hard to raise um for that. We'll see how many become freezer beef heiferettes.

Hey I need another 34 of those close up bred BM cows. They need to have some frame size to them.

 

[Stocker Steve]

Most BM cows were thin 1400 pounders. Auctioneer claimed they came off corn stalks. They needed some corn silage.

We have a round trip trade here - - where BM cows come east, and bred heifers go west.

 

[Stocker Steve]

- Open heifer prices are trending up.
- Feed is still expensive - - about $500 in feed, meds, interest, breeding to carry a heifer till fall.
- Spoke with an interstate jockey. He said it is brown and dry west of us... Does not sound like the western producers will be bidding aggressively on breds for a while.
- Breds going south into Iowa and Missouri have been holding up the current bred market here.

 

[tex452]

I have a different take on it. I've bought older, proven cows to raise replacement heifers for sale. Broken and smooth mouth cows that would raise a good calf and stay in good condition. Get three or four calves out of them and sell them for what I paid. In the meantime selling their daughters for more than what the cow cost. And so little calving problems with old cows compared to heifers. The only problem with older cows is you have to watch them for condition, and that's easy.
Heifers are prettier, but so many more problems.

You are right, but somebody has to do it.
I wanted to buy about 100 last year and sell bred heifers but my partner (son) didn't want to.
We bought a few and done good with them

 

[Josher]

Last year I raised 50 bred heifers and they were a hard sell but did sell. Buying bred cows looks quite attractive but I think I'm gonna stick to the program and raise some bred heifers again. They use less feed and pasture than running pairs. Only be buying 20 open heifers this year due to feed shortage. If we get any rain and pastures take off I suspect bred market is going to heat up.

 

[Dave]

B did about 300 of them last year. I actually bought about 100 of them for him. I don't remember what I was paying. He sold them for $1,400. We were talking about it a couple weeks ago. He was figuring he could buy a 650 pound heifer for $950 and make it work. I told him that after this last week at the sales it would be more lake $1,000-1,050 to buy them.

 

[Stocker Steve]

I reran a lot of bred scenarios last week. A problem with all of them was feed cost. Basically, you need to speculate on increasing beef prices to make the 2022 production numbers work here. You got to know when to hold'um...

 

[KAstocker]

B did about 300 of them last year. I actually bought about 100 of them for him. I don't remember what I was paying. He sold them for $1,400. We were talking about it a couple weeks ago. He was figuring he could buy a 650 pound heifer for $950 and make it work. I told him that after this last week at the sales it would be more lake $1,000-1,050 to buy them.

That's just buying nice looking heifers from the sale barn and breeding them?