The Market Report

August 13, 2019

In this business it’s easy to take ourselves too seriously and today I want to make one thing clear, I’m not against video sales, because they surely have a place. What I am against is the selling of the video by saying it is a cheaper way to sell your cattle. They are not cheaper they even cost more in some cases. In all that discussion there is one thing to keep in mind and that’s if video sales were to go away tomorrow nothing would change in marketing your livestock. We would still have true price discovery at every Livestock Market in this state and nationally. However, if all the Livestock Markets were to go away that would be catastrophic for the Livestock business in this state and nationally as well. That will be the most important statement we make in this report this year. IF ALL THE LIVESTOCK MARKETS IN THIS STATE AND NATIONALLY WERE TO GO AWAY IT WOULD BE CATASTROPHIC TO THE ENTIRE LIVESTOCK INDUSTRY.

This last year has thrown some amazing turn around’s in our markets and the last four days is just another example of how things can change at the drop of a hat. There was a fire in a packing plant in Kansas that processed 5000 head/day or about 5% of the National kill. So, the fat cattle are down the limit three days in a row. There is no way to explain that but what is even more ridiculous is the feeder cattle followed on the futures also. There is absolutely no calibrating evidence to support this kind of a move. It’s another example of the futures tearing the guts right out of this business and for no reason.

If we are going to trade cattle futures in the cattle business, then the federal government needs to supply the numbers of the total fat cattle on feed as close as they can and that is all the cattle that can be traded. You should never be able to trade phantom cattle only those that truly exist. It’s just common sense.

I’m going to talk bulls because someone might have missed our take on buying bulls in 2019. It is an amazingly simple process everyone can use. In the past we used visual selection to pick the bulls we brought, then along came some additional record keeping that helped in that selection process like Weight for Day of Age. Then we moved to EPD’s (Expected Progeny Differences) and that was a big jump in helping to select bulls that would help to produce calves that moved us towards a better calf other wanted to buy. Well now we have made the biggest jump in bull selection in the history of the cattle business. That selection process combines and balances all the EPD’s and also includes feed efficiency.   It then spits out a number that will let you know the minute you buy these bulls what kind of calf you’re going to raise. That’s right if you are truly interested in producing calves that have the very best carcasses, eat less and gain more then what ever you do don’t buy a bull without a $ PROFIT number. If you have questions just call me, I’ll explain. We have moved away from all the old selection methods to a real number everyone can use.

Jim Warren 831-320-3698

 

Representative Sales for this week

    

8 Blk, BWF 494# steers sold for $140.50

4 Blk 529# steers sold for $143.00

10 Blk, BWF 572# steers sold for $133.75

5 Blk 576# steers sold for $129.50

4 Blk 594# steers sold for $122.00

9 Blk 640# steers sold for $124.50

12 Blk 687# steers sold for $122.50

5 Blk 707# steers sold for $121.00

17 Blk, BWF 741# steers sold for $118.00

13 Blk 753# steers sold for $116.00

37 Blk, B BR 930# steers sold for $102.50

5 Blk 956# steers sold for $101.00

 

6 Blk, Red, BWF, Ch 430# heifers sold for $130.00

14 Blk, BWF 441# heifers sold for $136.00

8 Blk, Red 544# heifers sold for $121.50

9 Blk 576# heifers sold for $129.50

 

 

Cows Average/cwt High/cwt
Cutters $51 $57
Boning Utility $57 $62
Breakers $62 $69.75
Bulls Average/cwt High/cwt
High Yield $80 $86
Others $70 $80

 

Cows and bulls are steady in very active trading.