3 minute read
Cattle Inventory Report Came Out and it Confirmed
by THEAGMAG
BY EDDIE GARCIA
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Cattle inventory report came out and it con firmed the current constricting cattle cycle. Now everybody thinks they have to have one, like they’ll never make another. Wearing the futures market like a comfy sweater, makes ‘em feel all warm inside. If we just add a little water to the powder, it’ll stir the market up like a wooden spoon. Going back to the cattle inventory report, as a barn owner you see first hand why the herd is shrinking. Interacting with so many hardworking producers gives you an insight to the problems facing our industry. It wears on you when a man has to sell his herd cause he can’t afford to feed em, or cause of drought, volatile markets, inflation, or the land was divided, widowed, maybe old age, or the owners passed and the kids are on the phone.
Those conversations are real, and we take them very seriously. There are so many opinions to be formed but all I wish is the markets worked properly when there were abundant quality cattle, not when people were forced out. I know all about supply and demand but cmon man, I know the industry is cyclical but it shouldn’t have to be cynical. I respect the independent cattle feeder/grower, the guys who have their own cattle on feed. That steady order in the barn that gets them bought and placed . They compete against the corporate buyers, and assume a lot of the risk. This sector will be most affected on the buyer side pending proposed legislation. We need em in the barns flipping those cards. They add volume to the music.
We’ve been having our fall runs in the summer right now due to the drought, Prices are still better now than in the autumn, I’m speaking to market tendencies identifying themselves due to adverse market factors like drought, volume, or falling futures. It’s like a wad of bubble gum, you can blow a bubble but it always pops. Don’t get me wrong, prices on quality calves is still respectable, but you just get tired of the ups and downs.
It’s so disheartening to have to split a pair or weigh a bred cow that is only there cause of the drought. It weighs on you seeing the desperate look in the producers faces, trying to source hay, making tough decisions on cows they love, paying out of pocket to sustain the herd. The only thing green is the mesquite trees, hay rings in the pasture look like divots on a driving range, and just about every cow you see is getting supplemental feed. Is it the start of an epic one, or is it almost done, pray for the latter...
Packer cows and bulls pretty much covered their tracks from a week ago, after falling hard after the Fourth of July holiday, still about a 4 day drive to the west and about the same to the north. Plenty of cows around like Corb said, look for cows to hopefully be steady and bulls be higher. Good Stocker cows are tougher sale considering the conditions.
Our cattle as a whole should be worth more in relation to what the beef is worth. Cattle and Beef are synonymous, but the profit margin between the two is egregious. There is no profit sharing for the producers unless it comes from some sort of disaster payment. Beef promotion is important but it’s about time we promote the Cattle Producer, not the processor. Not the end product but the origin of the product, get back to when the calf hits the ground, not the other way around.
