Mathew Printz
Association Perspective
It's been a record year for bull sales in Region 13.
Now that it is well into spring and the primary bull-selling season for 2010 is behind us, one has to wonder what made bull sales in the Central Plains so strong. Just like the "Perfect Storm," I think many factors occurring simultaneously contributed to this result.
I have witnessed years when sale season started strong but eventually the momentum was trumped by market conditions, oversupply relative to demand, or just plain old bad weather. I've also seen the opposite, where sales staggered in the winter and strengthened with the prospect of a wet year, green grass and a general improvement of attitude. So, when sales in mid-January started out at a record pace, although exciting, the realist in me kept secretly thinking there was no way that kind of momentum could continue. But it did.
Even into mid-March and through the first part of April, sale averages were consistently up from last year, with many producers having the strongest sale in their career. And when the season drew to a close, it ended up being a record year for most. Based on reported sales, the average Angus bull in Region 13 brought $3,506, up $233 from last spring. This is amazing considering the U.S. has its lowest cow inventory in 50 years.
What factors contributed to this phenomenon? I think the first is the cull market and the economic signal it was sending. According to Cattle-Fax data, the cull market was strong, with tighter supplies and increased demand from the trimming markets. Weigh bulls were bringing in the mid-70s to the low 80s, which makes a ton bull worth more than $1,500. As a bonus, producers also saved a little hay because they didn't have to feed them the rest of the miserable winter.
A miserable winter it was. The winter of 2009-2010 ended up bringing above-average snow and below-average temperatures for much of the Plains states. Many people claimed to have not seen a winter like this in ages, some in their lifetime. So if the strong market was telling a producer, "Sell your cull stock now, the winter of 2009-2010 was shouting, "Why would you winter anything you don't have to?" People got the message and, as a result, numerous old bulls were loaded up and taken to town. This created additional demand leading into breeding season.
The final contributing factor, I believe, was the optimism among bull buyers. Although the winter was tough, it just seemed many had a fairly positive outlook on the future of ranching. I suppose the rally in the fed market and the strong prices for calves probably was the main reason. At any rate, people were in good spirits and acted like life in general was good.
Editor's Note: Regional Manager Mathew Printz covers Region 13, including the states of Colorado and Nebraska. Click here to find the regional manager for your state.
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