Unbelievable sale prices today

[nchobbyfarm]

I went to the sale and was amazed.

350-400 lbs steers bringing $2.80 to $3.27.

940-1250 lbs middle aged gorgeous cows bringing $1.45 to $1.55

400+ lbs heifers bringing 2.20-2.50.

Is the market ever going to find the ceiling?

[Allen W]

There will be a lot of casualties when it does.

[MO_cows]

Yes, when the crop of spring-born calves get weaned and sold, plus all the cows that came up open, prices will dip back down.

If you have anything to sell, get it done sooner rather than later.

[TripleD]

I know I'm not comparing apples to apples but I got 5 Holstien heifers 600lbs each @ $1.55lb Monday.

[Le Petit Norman]

I guess it's time to become a vegetarian for us non beef producers ….

[southerngurl]

Unbelievable sale prices today

Means something totally different on the cattle forum that it would almost anywhere else haha!

[badlander]

That's why when we drive by a couple of 'cattle operations' I see $$$$ signs grazing in the pastures.

[Allen W]

Originally Posted by MO_cows

Yes, when the crop of spring-born calves get weaned and sold, plus all the cows that came up open, prices will dip back down.

If you have anything to sell, get it done sooner rather than later.

We have the smallest cow herd since the 1950's I see a glut of cattle coming to the market any time soon. Corn prices and consumer demand will drive the prices for now.

[MO_cows]

Originally Posted by Allen W

We have the smallest cow herd since the 1950's I see a glut of cattle coming to the market any time soon. Corn prices and consumer demand will drive the prices for now.

It won't be a glut but it will ease up the tight supply for the short term and the buyers will take advantage of that like they do everything else. Prices aren't going back to 2010 levels or anything like that, just taking a dip like they do every fall.

[Jim S.]

Just sold these 2 angus-charolais heifers 7-15-14. They're weaned, bunk broke and black skinned, all plusses here. Total weight, 1,370. Sold for $1.92, slightly above the statewide price of 191.20 for the weight range. At an averaged 685 each, I overshot my target this year by about 85 pounds but I was busy and had to hold off marketing a bit.



Looking at the typical annual cycle, prices ought to hold up on feeders now through early October, then decline some.

Been at this a while, almost 25 years as a small farmer. I've sold calves for $2-plus with a $1.25 actual cost break-even, and I've sold calves for 33 cents with a 70-cent actual cost break-even. It's been a good long run for the calf price cycle now. It is being pressured by two things, chiefly: drought in the southwestern states and some central west states, and high corn prices gobbling up former pastureland for crops, which provide a 3 times higher ROI than cattle do. Those have held the national cattle herd numbers down to what is right now a 63-year low. It's now getting pretty much to where only the most marginal land in the US is being used for livestock. If it can possibly be cropped, it is being cropped. Pasture around me has been gobbled up by the plow the past 3 years.

Corn is now easing up in price, which will be good for feeders and hold up calf demand, and it will take years for the cow herd to expand, so it looks like this cycle, already an old man by historical standards, has nowhere to go on the downside for another decade provided there is steady demand, though my opinion is that further upside is limited from here.

So it is a good time to be a cow-calf farmer or rancher. But like I said before, I have sold calves at 33 cents with a 70-cent break-even, so there's no use in swaggering around flashing my cash now. This is the time for cattle farmers to clean up any outstanding debt, hold the line on that urge to expand your input costs just because times are flush, and save up a nest egg little by little over the next few years for when the cycle turns. It will.

There's a reason the old saying goes that there's only one way to raise 'em right - raise 'em cheap!

[FarmerDavid]

Sold some last week averaged 670@ 2.30$. Those are red and horned but nice looking animals. Got 1.32 for an 1800 lb bull.

[Lady89]

Originally Posted by nchobbyfarm

Is the market ever going to find the ceiling?

lets hope not if it keeps going up that is all good for me!

i need a good price on this years calfs to get a new breeding bull with a good blood line

[njenner]

We sold a steer that weighed 950 pounds and got $1.70 for him at auction; this was in early June.

[rambotex]

I see a number of things happening in East Texas. First, as Rancher's pass away their places are being divided up amongst the kids. The land values are so high that any child that might wish to continue ranching the place has to buy out the other Siblings and then he can't make it paying interest and a note. One reason we're seeing these numbers is because of the drought of 2011 and there will be another one; not this year i don't think, at least not in East Texas/La, Miss, Alabama. i'm happy for all of you that are enjoying the higher prices but everything cycles and you are one long dry spell away from having to sell some of your stock off unless you've got hay & water stockpiled. I can't remember the year, 20 or so ago, when cows were selling for 18-20 cents here during a drought. if you'd have had water and hay to winter them you'd have made a fortune. the next spring it started raining and the grass came right back.
Hindsight is always 20/20. Good luck to you small operations; i grew up around them and spent many a Saturday morning cutting calves, vaccinating, and worming cow/calves. Nothing like having cow sh_ _ all over by lunchtime, a sweaty horse, and a good cowdog. Bless these young'uns on this board that won't ever have the opportunity to do those things. God bless those of you that still get to, carry on.

[Awnry Abe]

Rambo, I agree. This all started with the TX drought in '11. Massive slaughter started there, and the effects continue to ripple.

[MO_cows]

We had cattle in the auction today, the suspense is killing me to know what they brought. We couldn't watch the sale, dropped them off yesterday early, to let them settle in. This is the first time we have sold at auction, it's nerve wracking. I think I'd rather deal with 20 tire kickers off craigslist than wait and wonder. We'll be wearing out a trail to the mailbox.....

[G. Seddon]

Fingers crossed for you, MO_cows!

[Awnry Abe]

You'll do great, MO. Your springers weigh 5-700 or so? 2.50-2.80....

[MO_cows]

These were "leftover" bulls. Kept them intact because they were pretty good prospects last fall, but a hard winter and lack of extra pens to segregate them and feed them like they should have been, left us with 14-15 mo old bulls at 850, when their sire weighed 1000+ at the same age, not fat just well developed. I hope someone buys them as breeders, the genetics are good they just weren't managed correctly and will look great by the time they are 2 - but I think they will go as feeders.

[FarmerDavid]

Originally Posted by MO_cows

It won't be a glut but it will ease up the tight supply for the short term and the buyers will take advantage of that like they do everything else. Prices aren't going back to 2010 levels or anything like that, just taking a dip like they do every fall.

In my mind the tight supply is driving the price up, but at the same time its making heifers pretty expensive to hold on to which makes it harder to expand the herd. I can sell that heifer now and have $1500, or i can keep her feed her for 20 months, hope that prices stay up, and have a $1500 calf to sell. Is my thinking off?

I kept two beautiful heifers this year out of my two favorite moms. Their were two others I'd have loved to keep, would have most years, but could turn down sale barn prices, it was pretty hard keeping the two that I did.