What is the market going to do

[Dave]

Do people know something I don't know? At last Friday sale there was a group of about 15 heifers that weighed 440 pounds that brought $2.24. They were mixed cross breeds. Some black, some red, and a few black whiteface and red neck calves. They were weaned with one round of shots in November. So they cost $985.60 per head. At the same sale I bought 3 black and black whiteface heifers that weighed a little over 800. They cost me $1,109 a head. I know my heifers are decent quality and at least not out of line price wise. The guy I out bid to buy them buys for his fathers feedlot. He buys good cattle and is willing to pay for them. My question is how do you put on that extra 400 pounds for $125. Either this market is going to explode in a few months or there are some people who are in for a real beating.

 

[TennesseeTuxedo]

That doesn't make a lot of sense now does it?

 

[Alan]

Dave, was this Chehalis or over east? I have wondered the same thing about prices at cwt breaks.

 

[Dave]

Alan, that was Chehalis. They had a barn burner that day. Lots of light cattle over $2.00. I had a friend tell me that I should go to Woodburn because they were cheaper there. But I know one of the auctioneers that sell Woodburn and he told me there weren't any heifers to fit my ticket. I hate to take a day off work and drive to Woodburn to end up coming home empty.

 

[kenny thomas]

Some of the price difference is because of the time period the calf is expected to be finished in the feedlot and the expected price then. If slaughter calf prices were expected to be 5 cents higher in July than in September it would make sense to have them coming off feed in July so you would need a different size calf at the begining. That said it seems like too much different in price still.

 

[Stocker Steve]

My question is how do you put on that extra 400 pounds for $125. Either this market is going to explode in a few months or there are some people who are in for a real beating.

Bud W. said if you did not sell (your calves) today, then you bought today.
So why hold onto light calves ? I have no idea.
But I do have an order in on heiferettes. :nod: