HerefordSire
Well-known member
I noticed the cattle markets dropped drastically recently as expected and predicted. Are reds selling for more than blacks now? If so, what could be some of the reasons?
:lol:HerefordSire":jy83gsa8 said:I might give an opinion later if I have sufficient time. I did notice buying support on lives in the very low 80s. The reasoning for recent weakness cooincides with the US dollar moving downward swiftly all of the sudden which is a little surprising. I would normally expect the opposite action to occur. There is another market force coming into play all of the sudden. Maybe Canada and the US liquidating?
alacattleman":2d7ix3lp said::lol:HerefordSire":2d7ix3lp said:I might give an opinion later if I have sufficient time. I did notice buying support on lives in the very low 80s. The reasoning for recent weakness cooincides with the US dollar moving downward swiftly all of the sudden which is a little surprising. I would normally expect the opposite action to occur. There is another market force coming into play all of the sudden. Maybe Canada and the US liquidating?
Australian":28iacq8w said:There has been a significant lift in prices for Herefords at production sales these past couple of months. Angus prices are still pretty good but coming back to more realistic prices. I believe they are not marbling as well as first promoted. It will be interesting to see how cattle prices go when the season improves. The Australian dollar is predicted to be equal to the US dollar very shortly ( its about 90 cents at the moment) There's always an excuse as to why the cattle prices are low they always seem to blame the dollar ( Aust to US ) I can't figure because we don't sell a lot to the US.
HerefordSire":tb0hjxvf said:As long as the market is healthy and the black buyers are agressive, premiums are received for blacks. However, when the market is down and weak, the reality for black versus reds sets in. The reality could be that reds deserve more money than blacks to compersate for biased marketing and too many blacks hitting the markets because they are overrated.
Frankie":1f8r33t2 said:HerefordSire":1f8r33t2 said:As long as the market is healthy and the black buyers are agressive, premiums are received for blacks. However, when the market is down and weak, the reality for black versus reds sets in. The reality could be that reds deserve more money than blacks to compersate for biased marketing and too many blacks hitting the markets because they are overrated.
Oh, I think you're wrong. As the market drops, I think there's going to be a bigger difference in prices, not smaller. The word "Angus" is still in the majority of USDA approved branded beef programs. If you're a buyer with $X, are you going to buy a black steer that will work in a dozen branded beef programs or one that might only fit one or two?
Reds "deserve" more money? Maybe in your world..... :???:
HerefordSire":3l7i7169 said:When the markets are weak and depressed, the truth sets in. All the marketing money becomes overhead that cannot be recouped. The reds can end up having higher margins, in this case, because of all the money spent on controlling minds. It should show up in a couple of places first, starting with the breed associations that advertise the most, wanting to charge more fees. If you raise blacks, your margins should be squeezed more than usual and if raising reds, premiums could be received because the supply is not there.
kenny thomas":2q1yqo6l said:Already worth as much if you get the right calves. If you don't believe it try to buy some of BRG's Red Angus genetics. Not just his calves but calves from the people who use his bulls. Their heifers are higher than any black steers here.
Reds are still discounted here but we don't have many good ones either.