Just how strong is our economy? The Federal rate cuts have helped somewhat, but is that a short term or long term fix? Gas prices have also come down recently, and that definitely helps. Judging by the lines at restaurants, movie theaters and just about anything else not at home, the public sure thinks there is money to spend!

With interest rates this low, maybe it’s a good opportunity to buy some longer term assets. Cows come to mind. The calf market has stayed very strong, with many calves still bringing over $500.00 a head, stocker weights bringing over $600.00 and feeders bringing $700.00 to $800.00. If a good young cow costs $1300.00 and she has 8 calves that bring $500.00, that’s $4,000 to feed and care for the cow! If it costs a dollar a day to take care of her, that’s almost $3,000 for feed and care of the cow, leaving $1,000 to put in the bank. That’s 75% return on your original investment! Sure sounds better than 4% interest at the bank!

The grain market continues to be very volatile, and judging from the big swings in the market, no one is sure of which way it might go. Feed costs at the feedyards are near $100.00/cwt, with fat cattle trading somewhere either side of $90.00. At today’s prices, something may still have to give, and hopefully the price of fats will get back up to reflect the prices at the restaurants!

We have a great market considering everything! Calves are bringing about $100.00, with spring time just around the corner, and feeders and fats are bringing in the $90.00’s, what’s wrong with those kinds of prices? Just ten or twelve years ago, we were all hoping to get above $70.00 for anything! It may all depend on your point of view, but we really do have a good market!

END OF THE MONTH COW SALE NEXT TUESDAY, JANUARY 29!

EXECTING OVER 1000 HEAD OF CATTLE!