Record feeder price

[Russ from MN]

I'm glad we shot 3 deer last year, still have plenty in the freezer!

 

[da.bees]

Huge sell off of breeder cattle last year because of drought means shortage of yearlings going to sale this year. Cows were slaughtered that would have dropped a calf within 2 months. Heifers being held back now to replenish herds further compounds shortage of feeders. Then comes the ban on importing cattle from South America because of screwworms. Supply is way down causing prices to be way high. We've had an abundance of rain this year so pasture and hay are plentiful but until ban on imports is lifted and calves from 2025 heifers reach market weight, prices will hold up pretty well.

 

[Fred Werring]

Took it a couple years ago thinking the same thing
Can't bring myself to get back in yet.
Basically giving hay away just to keep the ground for when I bite the bullet to buy a few

I'm small time, 40 momma's , and was going to get out a couple years ago.
But then I got a check for my calves.
Spent many years not making much for my time fooling with cows, guess I'm still in for another few years.

 

[caterpillar guy]

One of my hay guys was telling me what cattle were doing. Since the last of the cattle left about 5 or so years ago I have not watched the market. I had thought of buying a few smaller calve so grand sone could pet them and feed them with me when he is here. Not at the prices I'm hearing. I guess he will need to wait for a few years and then the elevator shaft will have hit and they will be cheap and the fats will be cheaper too. Same game have to stay in it for the long haul to get much of a profit out of an enterprise regardless of what it is.

 

[JOCCO]

That price meant an average of $2830. June 2026 fat cattle futures closed today at $232. If they were contracted for that and averaged 1500 pounds, that would be $3480. I suppose with a high volume in a feedlot, it might be doable. That's $650 a head. If you were buying for $1000 and selling for $1650, that might look pretty good. They're doing better than that at the sale barn. UPI in St Louis Mi topped at $260 Monday for fats. Cass City topped at $254 Tuesday.

I did the math too and came out with the $2830. What happens if the price severely crashes?

 

[rrlund]

I did the math too and came out with the $2830. What happens if the price severely crashes?

Those big feedlots have them contracted, along with feed I'm sure, so a profit is guaranteed. To buy them, put them in a small feedlot and sell them at auction when they're ready to go, you're taking an awful big gamble with loosing your shirt.

 

[DoubleR]

Ironically, we've been having to buy steaks. All we have left is burger. The wife called the two slaughter houses that we use, six weeks ago. The earliest we can get one in for ourselves is December 29. I've been eating a lot of hamburger steaks.

I sell all mine to private individuals. I have to make my butcher appointments over a year out. Before I even get the feeders and make the sales. It use to be before the big C I could call about any packer and get steers in on a couple week notice. Although I've been doing it long enough that I have the same people buying from me every year and buy feeders according to what I figure I will sell and buy market steers to fill my orders when I don't have enough. Prices are crazy now but haven't got any complaint's from my customer's as the seem to understand especially after they make a trip to the grocery store or run out of beef and have to buy it there.

 

[jwmfarms]

Not likely as bulls are over priced and can be nothing but meat in 2 years. M dad paid $16000 for a bull. he got a stick shoved up beside the sheath and spent a fortune on vet bills hopeing to use him yet.

I know a guy that bought an Angus bull from a top breeder some years back. He got him home, and immediately turned him in the bull lot. The next morning the bull was standing at the fence behind the house with a broken pen*s. It was during cold weather, so it had also frozen and turned black. There were no cows anywhere close, so they have no idea what happened. Vet said nothing could be done for him, so Mr. Bull got back on the trailer and went to the stockyard. Was on the farm for less than 24 hrs.

 

[paul]

I am not in the cattle business but good god were the plated with gold? What is causing this? I remember days you could get cattle for next to nothing. Though not top specimens or breeds. Would investing in a bull be wise?

Certain ecconomic and social influences during the virus year pushed folk into consuming more beef. We weren’t really expecting that, looking backwards we can see why but during that time we thought it would go the other way.

They still are paying for and wanting more beef, 5 years later.

Beef animal takes 2 years or more to cycle through to head to a packing plant.

Demand and the price paid for beef cattle currently has most beef producers selling off anything on a hoof to the packing plant, take the money now. Including breeding stock.

Which means every few months there are less momma cows to produce less calves to produce less beef in 2 years….

The cycle repeats. A bird in the hand as was mentioned. Cash in when you can!

With poultry it only takes a few weeks to rebuild a mature flock, so despite the terrible issues they have had with their bird flu, in no time after cleaning up they can be back in production. Chickens lay eggs daily to create many chicks in a hurry.

With hogs about 6 months will get you back to having lots of hogs ready to sell again, so likewise they can react to issues or increased demand pretty quickly. Sows have a lot of little ones 2-3 times a year.

Beef is different, mostly one calf per momma per year, and long time until the calf gets to market. Realistically the prices will have to crash before we get together enough cow herd to get enough calves to have enough beef 3-4 years later.

Issues with terrible insects in Mexico and other such also contribute to it all.

Paul

 

[EFV]

Wasn't there a wildfire that scorched a huge number of grazing acres last year ? Thousands of cattle killed ?
Farm industry papers and Google say heifers are not being held back because of incredibly high prices.
The ability of dairy cows to be inseminated with sexed Angus semen is really putting money in milk
makers pockets. Week old calves are $1000-1300 here in upstate NY.

 

[moresmoke]

Huge sell off of breeder cattle last year because of drought means shortage of yearlings going to sale this year. Cows were slaughtered that would have dropped a calf within 2 months. Heifers being held back now to replenish herds further compounds shortage of feeders. Then comes the ban on importing cattle from South America because of screwworms. Supply is way down causing prices to be way high. We've had an abundance of rain this year so pasture and hay are plentiful but until ban on imports is lifted and calves from 2025 heifers reach market weight, prices will hold up pretty well.

Prior to this year it has been 5+ years of drought across the western plains from Texas all the way into Canada that has cut into the cow herd. Even with widespread moisture this year it will be a few years before the grass recovers on some of that rangeland.

Those big feedlots have them contracted, along with feed I'm sure, so a profit is guaranteed. To buy them, put them in a small feedlot and sell them at auction when they're ready to go, you're taking an awful big gamble with loosing your shirt.

Keep in mind that many of the large feedlots are owned/operated/leased by the packers. Helps with market stability when you are your own market.

 

[ss55]

Wow! A group of 74 feeder cattle went through the sale at Blue Grass Stockyards in Lexington Tuesday, average weight 704 pounds. They brought $402 a hundredweight. Somebody had to write a check for $209,425.92 for them. I finish all of mine, but if I had to pay that kind of money for feeders, I'm sure glad I get mine just by pasturing cows and feeding hay to them over the winter. I think if somebody drove in and offered me that much for my calves, my feedlot would be empty next year. The whole "bird in the hand" thing would be an awful temptation.

Is the loss of feeder calves from Mexico ( and maybe lower numbers of feeder calves from Canada too ) limiting US herd expansion?

 

[paul]

Is the loss of feeder calves from Mexico ( and maybe lower numbers of feeder calves from Canada too ) limiting US herd expansion?

All such things are a part of it. Losing the feeder cattle from Mexico is a big deal now that we are short cattle, we can’t swoop in a percent from them to help out. But man that’s a bad bug, we sure don’t want that up here again!

Biggest driver is that Americans want beef and are willing to pay for it. This is demand driven.

Paul

 

[da.bees]

Foot-note for benefit of people who whine and complain about food prices. I saw ribeye for $7.99 and brisket for $3.49 today at Kroger Supermarket in Rockwall Texas. Someone is losing $10-$15 per pound on that meat.

 

[ss55]

Foot-note for benefit of people who whine and complain about food prices. I saw ribeye for $7.99 and brisket for $3.49 today at Kroger Supermarket in Rockwall Texas. Someone is losing $10-$15 per pound on that meat.

Different cuts sell for much different prices. Retailers advertise loss leaders to pull people into their stores.

 

[jhwis]

That price meant an average of $2830. June 2026 fat cattle futures closed today at $232. If they were contracted for that and averaged 1500 pounds, that would be $3480. I suppose with a high volume in a feedlot, it might be doable. That's $650 a head. If you were buying for $1000 and selling for $1650, that might look pretty good. They're doing better than that at the sale barn. UPI in St Louis Mi topped at $260 Monday for fats. Cass City topped at $254 Tuesday.

What are feeders bringing by you? Lexington is a little ways away.

 

[rrlund]

What are feeders bringing by you? Lexington is a little ways away.

Monday, 500-600 pounders, $320-400, 700-800 pounds, $300-347.50.

 

[jhwis]

Monday, 500-600 pounders, $320-400, 700-800 pounds, $300-347.50.

That's about the same here just to your west.

 

[Fred Werring]

Foot-note for benefit of people who whine and complain about food prices. I saw ribeye for $7.99 and brisket for $3.49 today at Kroger Supermarket in Rockwall Texas. Someone is losing $10-$15 per pound on that meat.

Cincinnati area

 

[Bruce from Can.]

Take a look at August 30 sale barn results near me