MARKETING...

Feeder Cattle Price Forecast – 5/15/09

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Darrell Mark

In the Cattle Markets

Bullish corn report not so friendly for cattle feeders

On May 12, the U.S. Department of Agriculture (USDA) published its first projections for corn supply and demand for the 2009-2010 crop year, which begins Sept. 1, in addition to updating its estimates for the 2008-2009 crop year. Generally, the report was bullish — for corn growers. Cattle feeders and other corn buyers found the reports’ numbers less friendly for their operations. Read more.

Tim Petry

Market Advisor

Will H1N1 flu affect cattle and beef prices?

The short answer to that question is yes. However, the total magnitude of the impact is difficult to forecast at this time.

The swine industry already has been affected dramatically — with May lean hog futures declining $10.53 within just one week, during which the cash hog market also declined. In addition, the hog market has been increasing seasonally and was expected to continue that trend, so the total price impact on the hog industry likely was more than the cash market decline indicated.

Unfortunately, significant monetary damage has occurred to the U.S., Canadian and Mexican swine industries. The entire international meat market will be affected. Read more.

The Credibility Builder

The Mule Creek Ranch of Wilmore, Kan., does a lot of things right when it comes to producing quality commercial cattle — everything from its comprehensive use of artificial insemination (AI) to its aggressive vaccination and preconditioning program.

But one of the most important things the ranch has done in recent years, adds manager Kim Leeper, was to enroll in AngusSource.®

“The program really helps us when we market our calves,” he explains. “It’s allowed us to consistently capture premiums. And it’s enabled us to share information on our cattle with our buyers, which strengthens their position as well.” Read more.

Miranda Reiman

The Source

Winners named in AngusSource® contest

Unwavering, resolute, committed — pick one, because they’re all accurate descriptions of winners in the first-quarter AngusSource® Carcass Challenge (ASCC).

The top producers and feeders share a steady focus on raising and feeding superior cattle.

The ASCC highlights those enrolled in the AngusSource genetic-, source- and age-verified program. Eligible groups of at least 38 head must be fed at a Certified Angus Beef LLC (CAB) partner yard. Read more.

Feeding and Marketing Cull Cows

Sale of cull beef cows accounts for 15%-25% of yearly gross revenues of cow-calf operations in the United States. Total quality losses determined by the 1999 National Market Cow and Bull Quality Audit were $68.82 per head compared to $69.90 per head in 1994. The audit concluded that much of this loss could be recaptured through improved management, monitoring and marketing.

Producers should identify opportunities to add value to market cows, as it may be possible to feed cows for a period of time before marketing to increase weight, improve body condition, and increase carcass quality and yield.

Also, cull cow prices generally follow a consistent seasonal pattern. Prices are normally the lowest in November, December and January and are at their highest level in March, April and May. Read more.

CAB Corner

Behind the menu price

Farm and ranch freezers are often full of home-raised beef, yet producer families still enjoy the classic steakhouse experience now and again.

With a quick scan of the menu and some cowboy math, most producers figure the New York strip list price at a hefty premium to the weekly sale-barn reports for beef on the hoof.

That means either (A), someone in the restaurant business is getting rich or (B), it takes plenty of work and capital to get beef to the consumer.

“The reality is everybody is taking a little piece of the pie all along the way,” says Mark Polzer, vice president of Certified Angus Beef LLC (CAB). “Product doesn’t go right from the packer to the plate; there are many important steps in between.” Read more.

USDA Market News

Click here for Livestock Cattle Reports, including Slaughter and Feeder and Replacement Cattle Reports.

Resources for Niche Markets

Click here to learn more about producing natural and organic beef
and/or grass-fed beef.

To view the Angus Almanac, a complete list of
Angus sales, click here.