The Market Report

July 16, 2019

 
There has been a lot going on in the market all spring. I can’t remember a time when things were up and down at the drop of a hat like it’s been this year. As we all move into cyber space it’s something we should expect. The funds trade a lot of commodities and there are things that they do to that trigger a sell or buy that make no sense to you or I. However, those triggers have a big impact on the cattle market both up and down. So, I think we can add some common sense to the real-world in the long term rather than trying to make sense of the cattle futures and grain markets as they bounce around on the commodity board with lightning speed.

So here we go! If we look at the grain markets from a strictly planting and yield standpoint and then discount the last planting report, there are going to be less acres planted. It was way too wet in the upper Midwest to plant the acres that they reported. However, the grain futures traded lower because of that report that said over 1,000,000 more acres were planted. When the grains dropped, the feeder cattle futures jumped up. Then more people decided that the report was bogus and got to thinking the grains will ultimately move higher and that has ultimately put a damper on the feeder market. If we look at the yields for the acres that were planted, we expect those acres to have wet spots, delayed days, and extremely hot weather to contend with, all negative by the way, therefore corn could surely move higher at any time. We think it’s important to keep in mind high priced corn is a short-term negative to the feeder cattle market but long term friendly to the cattle business in general. High priced grains mean feeders will feed their cattle to lighter weights and produce less tonnage of beef with the same numbers. That will allow us to move through the increase in numbers with higher priced fat cattle and get to the future where there are less cattle. Consequently, higher priced grains help us move through these numbers with the least negative impact on the market.

Now about the sale this week. It was great from start to finish. There might have been a few spots where the cattle could have been a little higher but there were more spots where things were really on fire. Light cattle this week were $2.00 to $4.00 higher. Cows and bulls were $2.00 higher as well. We called the heavy feeders steady, nevertheless the trade was very active for sure.

The bred cow sale was loaded with quality from start to finish but in my opinion, it was a buyers’ market. Cows bred five months traded from $1300 to $1550 and cows bred from six to eight months $1400 to $1800. The quality was great, but we expected the prices to be a little higher, so we called it an opportunity to add to your cow herd.

 

Jim Warren

831-320-3698

Here’s how the calves and yearlings traded this week.

 

11 Blk 554# steers sold for $148.00

10 Blk, BWF, BBR 575# steers sold for $146.50

8 Blk, BWF 599# steers sold for $145.75

17 Blk 645# steers sold for $131.00

24 Blk 660# steers sold for $135.75

12 Blk 663# steers sold for $136.50

31 Blk 695# steers sold for $134.75

23 Blk, BWF, B BR 718# steers sold for $136.25

16 Blk, B BR 730# steers sold for $129.50

24 Blk 767# steers sold for $130.75

28 Blk, BWF, Red 827# steers sold for $121.50

12 Blk, B BR 934# steers sold for 109.50

 

13 Blk, B BR 512# heifers sold for $140.50

19 Blk, BWF, B BR 516# heifers sold for $141.75

17 Blk, BWF, Char 601# heifers sold for $126.00

18 Blk 643# heifers sold for $132.25

20 Blk, B BR 664# heifers sold for $122.00

 

9 B BR 1071# bred cows sold for $1550.00/Hd

18 Blk 1085# bred cows sold for $1800.00/Hd

11 Blk, BWF, B BR 1119# bred cows sold for $1700.00/Hd

12 Blk 1120# bred cows sold for $1575.00/ Hd

10 Blk, BWF, B BR 1160# bred cows sold for 1725.00/Hd

8 Blk 1226# bred cows sold for $1625.00/Hd

 

 

SAVE THE DATE

 

TOPLINE LEACHMAN BULL SALE

SATURDAY, OCTOBER 12, 2019