Moisture! In the last ten days we’ve received great moisture in
all kinds of forms! Big snow in Kansas and the Panhandles, good
rains, sleet and snow elsewhere. It may not be enough to end a
drought but it is sure a great start! How welcome it is can be seen
in all the smiling faces around, even after trudging through the muck
to do chores!
Of course, it is confusing how the markets don’t necessarily
acknowledge the moisture. Blizzards across the feedlot areas usually
mean lots of pounds lost, let alone plenty of death loss, and that
tonnage loss should see a higher market, especially given the current
herd size. With the snow and rain covering a large area of wheat
producing country, a person would think the wheat price would not be
able to go higher, yet it has.
It makes a person wonder just how much supply and demand are
actually coming into contact with the futures markets, let alone
common sense. Rules of thumb that have stood for generations seem to
be thrown out the wayside. Granted, we have much better equipment to
handle Mother Nature, but the only thing that has changed in cattle is
their size and diet.
The past week has been very slow in the auction markets, with many
shutting down or postponing their sales because of the much needed
moisture. It seems like the markets have to be taken day by day
anymore, because that’s how volatile it is. Feeder cattle can be
higher one day, and several lower the next. Whatever happened to
those feeders that were in it every day?
Maybe the government wants to pat itself on the back, because it
sure seems like they have scared the markets enough to ignore common
sense and normal procedures. We would all like the government to
spend less money, especially on their own behalf, but maybe they
should think about the country, or the world, as a whole, rather than
just their little corner of it.
We have a great start to spring! All this snow should do wonders
for grass and wheat, warmer temperatures are only a few weeks or maybe
days away, and the market is still fantastic! It really has not been
Page 2 of 2 - that long ago that calves were only worth $500.00 instead of $800.00!
It will be interesting to see how the bred cow and pair market is this
spring. The potential looks fantastic!
Take advantage of these great opportunities! When everyone else
wants to buy, maybe it would be a good time to sell and vice versa.
When the snow and ice clear, temperatures rise and folks get out
again, they will probably want to go buy all the groceries they
couldn’t get earlier. People are still going to eat, and American
beef is best!
Get in the action! Go to the auction! Raise some beef!