Market Report Archives August 2005
Posted: Wednesday, August 3, 2005
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Enid, OK: Market Report for August 2, 2005
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Great cattle market! The overall market is very active and certainly good! Light weight calves up to $150.00, with stocker cattle bringing up to $125.00. Yearling cattle look higher compared to last week, with heifers from $100.00 to $108.00 and steers bringing from $102.00 to $110.00, with some thin yearlings up to $118.00!
It sure appears that the numbers of available feeder cattle is not near as big as is needed. We have had feedyards and feeding companies do nothing but get bigger in the last 10 years, while our cow numbers have gone down. This makes for a large demand and a small supply! Is that good for our industry? It’s a two edged sword at the best. It is somewhat good when a feedyard makes a deal to supply so many cattle a week to the packer, because that means the feedyard has to buy back so many cattle, whatever the price. On the other hand, that sure leads to captive supply, which the packers have turned into their greatest negotiating tool ever!
Think about it, last Thursday, feedyards were being bid $74.00, that’s SEVENTY FOUR, on fat cattle. On Friday, packers bought fat cattle for $80.00! What kind of market is that? I know the packers want to buy as cheaply as possible, but isn’t this getting ridiculous? We have one of the best markets in history, with cattle and beef selling at all time highs, but yet, fat cattle are being bid at prices equal to 20 years ago! And to top that off, the feedyard gives away FOUR PERCENT OF EVERY PEN THEY SELL!
One of the greatest qualities of the ranching life is that you can make your own decisions and live with the joys or disappointments of those decisions. If we keep letting these big companies buy everyone out, and skirt around the laws of the country, we may all end up being just employees of some big company. Bigger may sound better at times and vertical integration can work, however, ask around the countryside and see if anyone knows where to sell chickens or hogs, and what they’re worth. The answer could be surprising!
Support the auctions! The auctions around the country have a bona fide interest in making you more money! There are buildings, equipment, employees, state inspections, liabilities, and their own good word at stake working for you! Letting someone tie up your cattle up, without an auction, just isn’t getting the whole apple!
Thanks to all of our buyers and sellers! We appreciate the work!
Weston Winter
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