MAINE-ANJOU Commercial Connection
JOSHUA CRIBBS AMAA Director of Commercial Development
Spring 2020 certainly shaped up a bit different than we were all expecting and hoping, but that doesn’t mean we haven’t been able to make the best of the situation. If nothing else, the forced early school closings brought the farm and ranch help home early for the summer. The times created an inherent focus on family, safety and navigation of a new normal. Even with all the uncertainty, one thing remained constant through it all… the American Farmer and Rancher. Just like they always do, they’ve bent without breaking and continued to charge on with spring calving, breeding and planting. Those standing on the frontlines of agriculture commodity pricing are certainly getting used to trying times and figuring out how to keep moving forward. Being able to have the National Junior Heifer Show and being a part of an event that everyone in our breed was excited for was an awesome experience. As the summer continues to charge on and we start to move toward the fall, we are constantly in search of how to add profit to feeder calf prices. With harvest facilities still navigating the novel corona virus and figuring out how to get back to full capacity, AUGUST/SEPTEMBER 2020
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it is certainly adjusting fall feeder calf prices. The fall projection looks softer than ideal, and yet prices seem to be holding steady. Current 500-600 weight cattle are near $160/ cwt. Going forward, it looks as if we should see a slight increase and hold at that line. Although directly lower this year than the previous, in the month of July it still looks as if we should see a slight spike in prices due to reduction of cow inventory last fall. Due to a lower total spring calf inventory, it should drive demand slightly. The biggest kicker that could drive price up considerably is slaughter facilities increasing their kill capacity and continuing to come fully online. Reports from central Nebraska are that ‘Show List’ for fat cattle are staying constant at 1,400 to 1,600 head constantly, where a year ago it would hold in the 2,000 to 3,000 head list. The biggest fight feeders are facing with packers is the fact that the daily kill capacity is at 25 to 40 percent of what it should be depending on area. Because cattle aren’t a storable commodity, it’s becoming a constant battle to manage yield grade and live weight. There are some large takeaways that we saw with the Maine-Anjou cattle previously
on feed at South Dakota State University (SDSU) that can combat some of these issues. Because of COVID-19 we were forced to harvest those cattle a bit earlier than we wanted to and yet still were able to capitalize 76% Choice or better and maintain an average Yield Grade of 2. These things alone shine a light on the fact that cattle of MaineAnjou influence can be profitable in the yard. When you have to hold on to them, they have enough muscle to continue to develop fat cover and still offset the yield grade faults that other black hided cattle fall victim too. Be sure to take a look at the American Maine-Anjou’s most recent research studies findings included in this month’s Voice.
