The Market Report

May 21, 2019

 

This week I would like to thank all the customers that sent their cattle here to sell.  You are the reason we are still in business. It might be hard for some people to see the real value of our local market but just know we have spent 45 years developing buyers for your cattle. We know the success we have had when customers show up and buy cattle or call us on the phone and ask us to buy cattle for them because they need cattle and trust us. Those that want to sell their cattle at home know how thin the trade is when their country buyer takes one of our customers off the bleachers to sell him their cattle. You can’t blame the buyer; he gets them cheaper than the cattle he buys here. However, that also serves to drive the market down and is counterproductive to our efforts.

I want all those that say we always send you our cuts and twelve butcher cows nearly every year. You know we gladly take those twelve cows and sell three young cows for $80/$100 the high yielding cows bring $70 and the utility cows bring $60 and the old thin sell for $54.  Then add one very nice bull for $84 and you just turned a set of $55 cows into $65 cows.   This is because we have various places to go with all of them and a good sort turns a little commission into a bigger commission.  Just call the packer and see if he will allow you to sort the cows and pay that $65.00 for the same cows, I can guarantee he won’t.

This week I want to put the shoe on the other foot. Next time just tell the cow trader or video rep that wants your loads of cattle that you are taking them to the sale just like your neighbor. However, we are going to let you sell those twelve cows down in that pen over there. The twenty-two cuts we’ve sorted off, you can put them on the video and sell them to all those buyers you’ve got. When he tells you, he can’t do that he only sells load lots just ask him why last month he couldn’t sell your loads on video sale.  The cuts were sorted off to the livestock market and they sold them for more than the bid on the load lots. That’s the whole point of this market report. For those that think this Livestock Market can survive on your cuts and a few butcher cows guess again.

If you’re going to sell your cattle at home or on the internet there are some critical questions you should ask the rep that wants to sell them
1. How many people do you employ?  Answer 1
2. How much of the commission I pay you will get spent right here in our community?
Answer. 1% or about 1/2 of it
3. How much will the company you represent spend in our community this year?
Answer? I’m sorry they are from out of the area and don’t do business here.
4. Who gets the 3% shrink your deducting from the sale? Answer: the buyer
5. Who asks that you sort the cattle leaving me with a few cattle left for me to sell on my own? Answer: the buyer
Just food for thought; if you sort for the buyer give the buyer a 3% shrink then why am I paying you a commission instead of the buyer paying you?

HERE ARE THE 101 LIVESTOCK MARKET ANSWERS TO THE SAME QUESTIONS.
1.  How many people do you employ? Answer 14 full time and 6 part time employees.
2.  How much of the commission you collect do you spend here in our county? Answer: All of it.
3.  Do you take a 3% shrink on our cattle? Answer; no of course not we work for you and your cattle gain weight at our sale.
4.  Do you sort our cattle before they sell? Answer; yes of course we sort your cattle but it’s to your advantage and often the sort alone can pay all your commission.

If you’ve never been here, it’s worth the trip. We’ve put nearly everything we’ve made right back into this business. We started with twenty-five pens in 1975 and an old junky building. Today there are 340 pens, a nice building with 165 theater seats to fill, and a design that allows for the humane handling and movement of cattle through the market. All reasons we were the Beef Quality Assurance Award winner in 2010. Selected first from a pool of 750,000 producers nationwide. We were also the first Livestock Market ever to receive that award.

Now about the market. Most have already heard the market is lower, but this has had more of an impact on the heavy feeders and fat cattle than anything. We do however see both those markets on the rebound shortly.  The fact that the feeder is buying back cheap, is friendly to that market. The supply of yearling cattle will dry up shortly and we see the heavy yearlings moving higher as we get into summer. The push from here on is going to be on third party verified cattle. If they have had two rounds of shots, carry an EID tag and are Natural or NHTC approved they will be the market setters. Everyone will benefit from the market those cattle set.  On June 4th we expect 3000 cattle and half will be third party verified.

Jim Warren (831) 320-3698

 

Representative Sales

 

11 Blk, BWF, B BR 555# steers sold for $151.50

12 Red, Char 608# steers sold for $137.50

45 Red, WF, R BR 624# steers sold for $139.25

18 Blk 638# steers sold for $138.50

29 Red, WF, R BR 658# steers sold for $127.00

23 Char 666# steers sold for $136.50

 

16 Blk 520# heifers sold for $135.00

4 Blk, Red 550# heifers sold for $124.00

 

 

 

Cows Average/cwt High/cwt
Cutters $51 $54
Boning Utility $57 $62
Breakers $64 $75
Young Cows $75 $85
Bulls Average/cwt High/cwt
High Yield $78 $84
Others $71 $78

 

 

Save the Dates

 

Tuesday, June 4, 2019 Feeder sale

 

Tuesday, June 11, 2019 Bred Cow Special

 

Tuesday, June 18, 2019 Feeder Sale