June 20th, 2017

This week brought some interesting things to light. First, the futures has been straight down for nearly two weeks. The meat is steady so why the big drop? Cows and bulls have been higher, but they are worth more than they want to bring. The light cattle were $10/cwt higher. Double vaccinated and tagged cattle out sold the rest by $5/cwt. While the buyer attendance was amazing, we called cattle $10/cwt lower even with the futures $20/cwt lower. So how do we digest everything that has been happening and where do we start?

I think it’s important to look at the things we can control in responding to these market changes. Cattle that are EID identified and double vaccinated were the price leaders in this market. Sometimes it’s hard to explain the value in both of those added functions on the ranch, but $5/cwt on a 700# steer is $35.00. That isn’t hard to explain. That effort in the market place this week added over $1,700 to every load we sold. It might be a lot easier to see that value in a down market, but it has always been there.

The price of the wholesale meat is still high which makes me think the futures is not and has never been our friend and that trade is not now and has never been based on real market numbers and facts. Rather, it is controlled by people that make money on our business and never owned even 1 cow. So while we can’t control the futures we can look at the value of the meat, exports, and the value of the US Dollar. I think they are all things that point to a healthy market and this seems to be a step back for a minute.

Everyone that sells cattle has some light calves to sell with the big ones. This week those light calves sold off the charts. This is one of several examples: one customer sold 1 load of 650# steers for $140/cwt. The light calves off the same ranch at 425# brought $180/cwt and the 500# calves brought $170/cwt. That sale shows just one way we could add real value to your cattle with a proper sort.

We can’t tell where we will go from here as far as the market is concerned, but we are going to be in front of everyone in helping you do the things that add real value to the cattle you sell. This week was an example of big money paid back to you for our efforts to add value to the cattle you sell.

 

There is one more issue that has been coming up and that is NHTC cattle. Last year we got the boys’ cattle approved under that program and a few other ranches also. However, that market turned south just as we did all the work and spent the money. This year, feeders that feed cattle under that program are not willing to pay a premium for those cattle yet. However, cattle going to China and other non hormone treated cattle markets will step up in the future, but not just yet. China is NOT requiring cattle to be NHTC approved. However, keep in mind they will test cattle they get for hormone residues in the meat. That fact has made packers in the U.S. say they will only kill NHTC cattle for those markets because they are backed up by a 3rd party verification. They feel the risk is too great to send cattle to China that have not been 3rd party verified, and I think they are right. We have the potential of screwing up a great potential market for our beef if these cattle are shipped on an affidavit only.  Because we have been the leaders in following those markets and making them available to you now and in the future, we will keep you informed when we feel there is real value there for your cattle.

Have a good week,

Jim Warren (831) 320.3698

 

Representative Sales

 

7 red and char 439# steers sold for $188.

5 black 457# steers sold for $175.

3 black 480# steers sold for $174.

4 red and wf 486# steers sold for $173.

3 black 530# steers sold for $165.

4 black 535# steers sold for $164.

22 black 586# steers sold $145.

75 black and black broc 644# steers sold for $140.50.

11 red 665# steers sold for $135.50.

30 black 675# steers sold for $137.50.

11 black and red 696# steers sold for $130.

19 black 700# steers sold for $130.

11 bwf 738# steers sold for $132.

48 black 748# steers sold for $130.50.

65 black, bwf, and red 754# steers sold for $128.50.

3 black and black broc 755# steers sold for $127.

29 bwf 854# steers sold for $124.50.

17 black 856# steers sold for $124.50.

9 black and char 891# steers sold for $125.

 

5 black 465# heifers sold for $161.

8 black 481# heifers sold for $160.

3 black 510# heifers sold for $130.

5 black 542# heifers sold for $130.25.

11 black and black broc 553# heifers sold for $128.

3 black 560# heifers sold for $128.

78 black and black broc 630# heifers sold for $128.75.

11 black 659# heifers sold for $123.

12 black and bwf 663# heifers sold for $125.

6 black 665# heifers sold for $125.50.

7 black 704# heifers sold for $128.

7 black and bwf 751# heifers sold for $118.50.

7 black and black broc 801# heifers sold for $115.

Steers
Weight Avg/cwt High/cwt
400–449# $182 $188
450–499# $171 $175
500–549# $150 $165
550–599# $141.50 $145
600–649# $137 $140.50
650–699# $133 $137.50
700–749# $128 $132
750–799# $125 $128.50
850–899# $122 $125
Heifers
Weight Avg/cwt High/cwt
350–399# $155 $155
400–449# $160 $160
450–499# $149 $161
500–549# $127 $131
550–599# $125 $128
600–649# $127 $128.75
650–699# $120 $125.50
700–749# $118 $128
750–799# $112 $118.50