The cattle market continues to look very well despite high costs of gain, high cost of gas and high costs of just about everything in between! Its amazing how much inputs have risen, corn and wheat are almost three times higher than they were a short time ago! Maybe it’s supply and demand, maybe it’s inflation, hopefully it’s just agriculture catching up to the rest of the world!
Even with the packing “industry” controlling prices on fats, things may have a silver lining. In a normal year, the middle of April would see warm temperatures, trees all greened up and big cattle coming off some wheat. This year, there hardly seems to be any big cattle moving. The majority of the cattle selling at town, at least in the plains, are weighing under 750, with quite a few in stocker weight and condition. Maybe this will spread the numbers out enough to help the fat market.
Something else to think about: the normal weather pattern might be returning! Almost every old timer says it used to snow a lot in Oklahoma, and April snow storms were not uncommon north of the Oklahoma border! The large amount of moisture and cooler temperatures are not out of line, but they are sure welcome! Every drop of rain is going to go somewhere, and there are plenty of aquifers that need replenishing. Let’s be thankful for the good moisture, and remember that summer time heat is not far away!
When will the cow herd numbers get back to normal? With the fewer numbers available it makes every thing a little topsy turvy, just like the gas and oil markets. When there’s lots of something available, most folks take it for granted, but when the numbers are down, everyone wants to get excited! Maybe with all the moisture, people can start to buy back some cows, and get some more calves to market.
The market sure looks good this week, maybe steady to a little stronger. Stockers are very attractive and have plenty of outlets, while heavy feeders are hard to find, but it seems like that’s a blessing right now. Many cattle, if not all, are losing money coming out of the feedlots, and the only saving grace is if they were hedged. With so many cattle being bought according to the board, it makes a pretty big difference when they come out and how big they are.
Overall, we have a great market! Calves and stockers still bringing great money, feeders are really bringing good money considering the cost of gain at the lots, while fat cattle are bringing little enough that food in the stores and restaurants ought to be very affordable!
Thank You
Weston Winter
