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Posted

In my ventures yesterday, I ended up at a Hispanic tire shop in Dodge City. It was basically right across the street from National Beef, and a mile or so from Cargill. While I was paying my bill, I was visiting with the lady owner. She told me that both plants are only operating at maybe half of what they were. Her husband is bringing home less than $400/week. If that was the sole income a family would be in dire straits!

That brought the question as to why are they operating at this pace? Are they trying to keep the beef prices up at the consumer level? Are the cattle numbers that low? 
I have hauled corn into a number of different feedlots around Kansas and Texas, and there are a BUNCH of BIG cattle. The feeders are saying they can’t get the packers to bid on them so they keep feeding. 
It’s a very interesting time. 

  • Sad 1
Posted

Beef slaughter numbers are down overall are they not?  Cow heard is not growing.  Dairy can only supply so much beef.

 

1 hour ago, Lazy WP said:

The feeders are saying they can’t get the packers to bid on them so they keep feeding. 

A similar sequence of events led to many cattle feeders being bankrupted in this area in the late 70s/early 80s.  Fat cattle prices sagged, feeders tried to ride the lower prices out by continued feeding, packers started lowering the bid on over sized animals.  Turned into a death spiral into bankruptcy. 

Posted
3 hours ago, Lazy WP said:

In my ventures yesterday, I ended up at a Hispanic tire shop in Dodge City. It was basically right across the street from National Beef, and a mile or so from Cargill. While I was paying my bill, I was visiting with the lady owner. She told me that both plants are only operating at maybe half of what they were. Her husband is bringing home less than $400/week. If that was the sole income a family would be in dire straits!

That brought the question as to why are they operating at this pace? Are they trying to keep the beef prices up at the consumer level? Are the cattle numbers that low? 
I have hauled corn into a number of different feedlots around Kansas and Texas, and there are a BUNCH of BIG cattle. The feeders are saying they can’t get the packers to bid on them so they keep feeding. 
It’s a very interesting time. 

IMG_3794.thumb.jpeg.a77fce64a4c329f48b50bcdc746680ce.jpeg

Posted

Steady here, although this report is a couple weeks old, guess we'll see what this week is like.

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Posted
1 hour ago, Chester5732 said:

Not surprised if they manipulate things so they name the most money.  That’s what happens when there’s not much competition. 

Winner -dinner, wizard and ponsi been at it 120+ yrs.Seen it in action too many x. Little is "reported" as we all know what happened to Jack for peeking behind the curtain.

Posted

I don't see how it pays to hold calves for feeders? If they are worth 2000 at birth, why hold till fall and get 2200? Doubt I'll be selling any of my fresh calves,  but not really sure why other then it seems backwards. 

Posted
48 minutes ago, WisIHCFarmer said:

I don't see how it pays to hold calves for feeders? If they are worth 2000 at birth, why hold till fall and get 2200? Doubt I'll be selling any of my fresh calves,  but not really sure why other then it seems backwards. 

For one thing $2000 was the top. They are not all bringing that much.  There are still a lot bringing closer to $1200. 

  • Like 1
Posted
14 minutes ago, Chester5732 said:

For one thing $2000 was the top. They are not all bringing that much.  There are still a lot bringing closer to $1200. 

Agree, however, our market report for calves has had two consecutive reports where the top calf was 2k or more. And beef cross calves were in the 1000-2000 range. So likely if you had nice calves no blemishes 1500 wouldn't be far off for average. 

  • Like 1
Posted
49 minutes ago, pt756 said:

All I know its going to be a buggar on the way down

The way down won’t be slow like the climb up… think jumping from a plane. Better pack a parachute!!!

  • Like 1
Posted
3 hours ago, Dirt_Floor_Poor said:

There could easily be a correction, but we don’t even know if we’re at the top yet. 

I thought the top was two years ago,boy was I wrong. 

  • Like 3
Posted
3 hours ago, Dirt_Floor_Poor said:

Are there any dairys that feed their own beef calves out that they produce? That seems like the next progression. 

My oldest daughter works on a dairy farm that does just that. They even buy feeders above what they produce. 

  • Like 1
Posted
4 hours ago, Dirt_Floor_Poor said:

Are there any dairys that feed their own beef calves out that they produce? That seems like the next progression. 

Yup, quite a few in our area

Posted

I think dairies always have feed refusals, with only our 100 cows not that much, however on a larger dairy could amount to something, my friends that have about 500 cows remix that into feed for the steers they feed out, a few pounds on a 500 cow farm adds up,

Posted
6 minutes ago, pt756 said:

I think dairies always have feed refusals, with only our 100 cows not that much, however on a larger dairy could amount to something, my friends that have about 500 cows remix that into feed for the steers they feed out, a few pounds on a 500 cow farm adds up,

Yes,mine went to the dry cows.

Posted

im really surprised the consumption isnt down with the prices of beef at the store, i dont buy any, havent bought any in a couple years except enough for a burger a couple x a year on the grill 

 

  • Like 1
Posted
5 hours ago, Dirt_Floor_Poor said:

Are there any dairys that feed their own beef calves out that they produce? That seems like the next progression. 

Yes.

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