The Market Report

June 11, 2019

 

There are two things that I want everyone to know this week in this report. First the annual Livestock Market Association convention was held in Visalia California last week. It was held in conjunction with the Worlds Championship Auctioneers contest held and sponsored by Tulare Sales Yard that is owned by Dave and Tina Macedo. They both did an amazing job. It was first class from start to finish. It was more than an event it was the representation of the entire agricultural community in this state. There were hundreds and hundreds of people at the event and many were involved in its production. The entire event went off without a hitch. Quality people doing an amazing job. Congratulations to you both and all those that helped to make it happen.

 

At the same time the annual Livestock Market Association Convention was going on. There is so much more to this business than most could comprehend. Our association is in Kansas City and run by the best people found anywhere in this business. They keep us up to speed on critical issues coming down the pike so we can determine our own business destiny rather than wait for things to happen which could put us all out of business and then try to react after the fact. All member markets are blessed to have such amazing people on our side. We will be forever indebted to their quality work and dedication to the livestock industry. We want to thank all the LMA staff for all you do every day to keep us in business and congratulations on a great convention.

Now about the market. We are in a state of flux the likes we haven’t ever seen before. That’s right we usually have a market that responds to supply and demand factors but not this time. There are so many factors affecting the market I’m not sure anyone could make a reasonable prediction on where we’re going. Corn is moving higher and that has forced the feeder cattle lower. The wet spring in the major corn growing states has delayed plantings and the late plantings will hurt yields however there is a lot of corn carry over from last year. They have killed millions of pigs in the Far East consequently that will also hurt demand for corn. We have more cattle in the pipeline, so the fat market keeps expecting them to show up at any minute. The differed fat cattle market has been lowering all spring and is trading ten dollars back of the current cash market. We did it all spring and now here we go into the summer months. We think the best advice is when your cattle are ready, sell them and live to play another year. However, the program cattle continue to set the stage on prices and that trend is to continue. All the cattle we sell move up in price because we have great buyers for the program cattle. There is another factor that continues to play an ever-increasing role in the price cattle bring here. It’s Topline Leachman sired calves. The quality of calves sired by these bulls is evident and as corn moves higher buyers are starting to look at the feed efficiency these calves bring to the table. They also are price leaders in our market. That’s right sometimes the commercial cattle will bring almost as much as program and Topline Leachman sired calves and that’s good for everyone.

We have been the leaders in selling program cattle for years and I’ll be the first to admit that market has been spotty at times but all last year we kept trying to let everyone know it was a break out year for program cattle. This year is just an extension of last year except just as we have predicted, this year there’s more demand. Here’s the deal when these cattle are fat, they are worth $17.00/CWT over commercial prices. It pays to spend a little money to Third Party verify your calves when the premiums are averaging about $10/CWT.

We have put together some representative sales of commercial cattle and program cattle. It will give everyone a chance to compare weights and prices. We pulled all the bigger pen lots out to get these figures and never added some of the lowest prices to get our comparison. Last week the spread between program heifers and commercial heifers was a lot closer in price. This week the spread was around $10/CWT, very close to the steer spread. We have not charged a cent to do the paperwork, reading the tags, and collecting the data to send with the cattle. We’re just trying to add value to the cattle you sell and it’s surely working.

 

 

See you at the sale,

Jim Warren 831-320-3698

 

 

 

Commercial Steers Program Steers
# of Head Avg Weight Avg $/CWT # of Head Avg Weight Avg $/CWT
73 582 147.62
95 641 140.16 38 611 153.11
176 747 125.49 48 752 135.28
48 809 113.72 32 840 125.00
Commercial Heifers Program Heifers
42 553 128.11 48 585 139.33
79 657 120.71
40 723 111.38 72 750 123.41

SAVE THE DATES

TUESDAY, JUNE 18, 2019 SPECIAL FEEDER SALE

TUESDAY, JULY 16, 2019 BRED COW SPECIAL