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Expectations are for higher quality beef to remain in vogue, and premiums for Choice and higher graded beef to remain strong in 2023 and beyond as the U.S. takes cattle numbers lower. In recent weeks, the number of carcasses presented for grading has shown Prime and Choice graded carcass percentages lose ground in favor of Select-graded carcasses. [Extracted from the article]

I got rid of my cows during the drought of 2012 and I got rid of all the cows I had earlier this year and half my current inventory is fly-weights. If forage production is down 75% and we sell a 1,250 pound cow and buy back a 350 pound heifer we just destocked 75 percent as a rule of thumb. Fly-weight cattle I am suggesting the fly weight heifer for a reason. [Extracted from the article]

By doing this trade an operation could have gotten paid $200 more for the value they sold into the market than the value was worth and generated over $500 cash flow. We must learn to evaluate these value relationships so that we are sure we are getting paid more for the value we sold into the market than it is worth. Female cattle markets Last week I mentioned the value that rainfall added to the female market in places that are fortunate enough to receive rain. [Extracted from the article]

The high cattle prices have certainly caused a buzz. The conventional buy sell marketers are getting their heads handed to them. So, I can see why the sell/buy cozener is abandoning the principles of sell/buy marketing and getting excited himself about these high prices. [Extracted from the article]

Trucking feeder cattle long distances can impact animal health outcomes and improper handling by animal handlers can lead to bruised or injured cattle. B Fed cattle implied trucking premiums and discounts b As much as we know about the potential animal impacts due to transportation, little is publicly or widely known about the pricing mechanisms of trucking. Figure 2 shows the average implied trucking premiums/discounts for fed cattle from 2010-2020 and the yearly premiums/discounts for 2021, 2022, and 2023. [Extracted from the article]

Ranchers often rotate cattle seasonally among different pastures on their operations but may allow cattle to graze season-long in a single pasture. Implementing a more intensive rotational system within the growing season - dividing the pasture into smaller areas, or paddocks, and shifting a herd of animals throughout the season - has been suggested to offer a greater chance for more sustainable grazing management. [Extracted from the article]

Total year-to-date cow slaughter is down 3.6 percent year over year with dairy cow slaughter up 4.6 percent year over year and beef cow slaughter down 10.3 percent year over year. Boxed beef prices are pushing higher as a result of decreased beef production and supported by continued strong beef demand. Daily slaughter totals for the year-to-date show that steer slaughter is down 2.3 percent year over year, with heifer slaughter up 0.4 percent year over year leading to total fed slaughter down 1.2 percent for the year thus far. [Extracted from the article]

If the market goes up and you did not purchase risk protection, or if the market went down enough that you received indemnities above and beyond your cost of risk protection, then you have achieved the maximum financial result. Examining October feeder cattle futures prices for the last week of March relative to the October Chicago Mercantile Exchange feeder cattle cash settlement index in the graph below is a reminder that much can happen to markets in six months. The outlook for cattle prices remains bright for the next few years as cattle and beef supplies continue to tighten. [Extracted from the article]

In talking to some sale barn owners this week, they all agreed they will sell considerably fewer cattle this year. We can get our pom poms out and cheer all we want about higher prices, yet if we do not market our cattle in a certain way this paradigm can still cause us to lose money. [Extracted from the article]

A question was asked this week concerning beef supply and demand in 2023, which is an appropriate question given the reduced cattle inventory. With supplies expected to decline, there is a good chance beef prices will push higher, but it is unknown if it will be high enough to temper beef demand. It seems certain domestic supply of beef will decline in 2023 relative to 2022, because there should be fewer animals making their way through the fed cattle system and a reduction in non-fed slaughter. [Extracted from the article]

When we examine the price of first calf heifer pairs, and bred heifers to the open replacements the value capture is unattractive at best and nonexistent at worst. With some heavy weight feeders posting a sell price slightly above to slightly below fat price there are some outstanding fat-to-feeder trades to be made as well. Few people understand that the COG is the fulcrum point for price relationships between cattle. [Extracted from the article]

Last week after wrapping up my latest marketing school, my wife and I took our daughter to the Nebraska State Basketball Tournament. The power of paradigms is extremely strong and most people will cling to that idea, and look for others to blame for why it is "impossible" to make money in the cattle business. [Extracted from the article]

For the first time in several years it appears that all segments of cattle and beef markets are on the same page and responding to tightening supply fundamentals. Higher cattle prices will push wholesale and retail beef prices against beef demand, which remains strong but somewhat muted currently. There will be resistance to higher beef prices, but the reality of decreasing beef supplies will ultimately push beef prices higher. [Extracted from the article]

We know from experience that 10- and 11-weight cattle don't sell well at an auction, so we are pretty much limited to taking these cattle to the terminus. If a player leads the team in turnovers, and the team is down by one and has to inbound the ball under their own basket it makes no sense to me to have this player inbound the ball. Cattle market view This week fly-weight cattle had the highest Value of Gain (VOG). [Extracted from the article]

Food and fuel prices rose much more than the price of cattle did. If we compare today's prices to the prices early in the week before the invasion cattle under 500-pounds are up 15%, and cattle that weighed 600 to 900-pounds are up 18% (I am dropping the decimal). That is what understanding your costs and having the market literacy to be able to interpret that into price relationships between weights of cattle can do for a person. [Extracted from the article]

The light-weight cattle have a high VOG, the middle weight cattle have a low VOG and the heavier feeders have a high VOG gain again. One sale even sold heavy nine weight bred heifers for less dollars per head than a 950# feeder heifer would bring on their weekly sale. Your cattle didn't bring what cattle sold for the week before. [Extracted from the article]

Teenagers learn cattle marketing Back to those two teenagers in my class. This week I wrapped up another sell/buy marketing school. There are some marketing schools out there teaching people to do just that. [Extracted from the article]

In 2022, more of the receipts are coming from cattle weighing less than 600 lbs. and heifers - both signals that the drought in various parts of the United States is affecting feeder and stocker cattle being sold. If price risk management tools are used such as CME futures or options or RMA Livestock Risk Protection, producers some of this risk by "locking in" an output price but are still subject to basis risk. Cumulative national feeder and stocker cattle receipts are slightly lagging both 2021 and the 5-year average (2017-2021) at 12,098,700 head through Oct 21. [Extracted from the article]

Let's take a look at 5 headlines involving cattle from across the USA. For example, for cattle producers aiming for cattle to gain weight quickly - important for grass finishing - a combination of big bluestem and indiangrass would be the best forage option. Three of the warm-season grasses evaluated in the study - eastern gamagrass, switchgrass, and a mix of big bluestem and indiangrass - were native grasses. [Extracted from the article]

The Longhorned tick causes the loss of millions of dollars in agricultural revenue to cattle producers worldwide, and it is now in northern Missouri. The discovery of Longhorned ticks in northern Missouri greatly increases the need for more vigilance towards ticks in general and the need for routine monitoring of the pathogens they transmit." "Although these Longhorned ticks are known to transmit a number of human disease pathogens, at the moment the threat from them appears to be mostly bovine theileriosis, which impacts cattle". [Extracted from the article]

Feedlots prefer to place heavier feeder cattle when feed prices are high, so the price discount on higher weights gets smaller. I hear a lot more discussion of feed prices than value of gain when producers discuss cattle feeding programs. [Extracted from the article]

Most years, September would be occupied by lots of attention to wheat planting and budgets for winter grazing of stockers. Southern plains feedlot cost of gain for steers is roughly $1.25 - $1.30/lb. currently, so stocker value of gain will typically be about that same level. The difference in the purchase price and selling price of stocker cattle is the rollback that determines the gross value of gain for adding weight to feeder cattle. [Extracted from the article]

Her skill level and maturity level were different than that of her peers that left. his young woman got what she needed at HHD as well. A look at the markets When I look at market reports from the week the Value of Gain(VOG) should cover the Cost of Gain(COG) up until cattle weight about 800 pounds in the plains states. I want to give a shout out to all the people that work behind the scenes to make Husker Harvest Days happen and the people of Grand Island, Nebraska. [Extracted from the article]

We are in a scenario where there are more cattle in feedlots than a year ago only because there are less feeder cattle "outside of feedlots" than would normally be expected. Drought and pasture conditions continue to push some cattle into feedlots sooner than normal which is contributing to the larger placements of lighter cattle. The August 1st Cattle on Feed report was released on August 19 and showed feedlot inventories declined seasonally but remained above year-ago levels. [Extracted from the article]

"One of the drivers is the cost of gain, which is how much is my feed cost per how much weight I can put on those calves during a certain period of time", White said. Veterinarian Brad White added: "By using a preconditioning program, hopefully, these cattle will stay healthy leading to a smoother transition and better performance in the feedlot, making them more profitable in the long run.". [Extracted from the article]

They have a cow/calf herd, they sell some freezer beef, and they both have trader herds, consisting of stockers, to help increase turnover and add another revenue stream. With Sell/Buy marketing we can properly identify which animals should be sold, and even possibly buy back animals that may fit the situation better. A view from the markets This week looking at the markets I will just get the broken record part over with, the buy back against fats is the large feeder heifers located south of I-70. [Extracted from the article]

You can catch Doug Ferguson live each day at 12:15 has he offers ways to put more money in your wallet with sell/buy marketing. If we market cattle to earn money, and cattle haven't gone up in price like other things then that implies our money is under-valued. If the paradigm of money being under-valued is in place we have left the door wide open to do sloppy trading and lose money because it is justified in our minds. [Extracted from the article]

Since Sell/Buy marketing is a real-time cash flow reckoning there is no excuse for losing money with this kind of technology in our pocket. Fly weight cattle had the highest Value of Gain (VOG). You can catch Doug Ferguson live each day at 12:15 has he offers ways to put more money in your wallet with sell/buy marketing. [Extracted from the article]

In a business meeting, the Senate Agriculture Committee advanced out of committee and prepared for floor action two cattle market reform bills, S. 4030, the Cattle Price Discovery and Transparency Act of 2022, and S.3870, the Meat and Poultry Special Investigator Act of 2022. Sen. Roger Marshall, R-Kan., introduced but immediately withdrew, an amendment he plans to bring up when the bill comes up on the full floor that would eliminate the market acquisition mandate for fed cattle. [Extracted from the article]

Digging into this week's cattle trades Meanwhile in the cattle trade, looking at the female market it reconfirmed that summer calving cows are under-valued. An interesting trade possible this week was selling a bred fall calving heifer and replacing her with a heifer pair. Just because the market is generally over-valued doesn't mean there isn't opportunity to generate some positive cash flow. [Extracted from the article]

Chronic heat stress, or prolonged heat stress, affects a cow's ability to breed or stocker cattle's ability to gain weight, Bailey explained during a recent MU Forage and Livestock Town Hall. Reducing heat stress Here are five ways to alleviate heat stress in cattle herds: B 1. [Extracted from the article]

If someone sold their young pairs, and replaced with the summer calving females, of the same age, there was almost enough cash in this swap to pay the expenses of running a cow for the entire year. Summer calving cows were selling slightly over the scale. This week feeder bulls we 10-30 back and unweaned cattle were 10-17 back I got to watch some female sales in western Nebraska this week. [Extracted from the article]

We look at the entire market, that means the cattle that are not on market reports. That is another great thing about sell/buy skills, they can get you out of a jam This week looking at the feeder markets there continues to be a big roll back on flyweight steers and heifers. Market reports won't share that information with you, so now the idea of what the market is doing is skewed. [Extracted from the article]

If we sell it when it's over-valued our ratio of money to our production will favor money. If we did not replace the cattle we sold with money or something of equal value we would stop taking our cattle to the sale barn. The market will signal to us that it would like to have the production from our widget back, this means the production from our widget is over-valued. [Extracted from the article]

In brief, the Cattle Price Discovery and Transparency Act requires the nation's largest beef packers to procure a percentage of their cattle via negotiated-type trade. Senators Deb Fischer, R-Neb., Chuck Grassley, R-Iowa, Jon Tester, D-Mont., and Ron Wyden, D-Ore., released an updated version of their legislation, the Cattle Price Discovery and Transparency Act, that was first introduced in November 2021. Cattle industry mixed The cattle industry has been supportive of the cattle contract library concept, which a pilot program was included in the final appropriations bill for FY22 and overwhelmingly passed in the House last December. [Extracted from the article]

In the marketing schools I teach now I discuss money. If someone refuses to talk about money it is usually because they do not use their money to serve them but they work to serve money. Or put a different way they work for their money instead of putting their money to work for them. [Extracted from the article]

The steer side saw more volatility on VOG due mostly to buyer interest or lack of interest in bidding on steers under 500-pounds. With sell/buy marketing skill we turn inventory during a downturn. This cash flow will help offset inventory valuation going down. [Extracted from the article]

This will likely erode some profitability, however closeouts through the next couple of months had lower feeder cattle input costs at time of placement, which should offset some of the rising feed costs for the next four months." February cattle feeding returns continued their positive streak in February, calculating to just under $100 per steer, according to the Livestock Marketing Information Center (LMIC). "At those prices, and current grain prices, putting a 500 pound animal on feed that was bought north of $185/cwt. would need a breakeven fed cattle price of $160 or higher.". [Extracted from the article]

The latest Cattle on Feed report was released last Friday and included a February 1, 2022 cattle on feed inventory of 12.2 million head. Deteriorating winter pasture conditions and improving January cattle prices might have pushed some lightweight cattle into feedlots earlier than usual. Graph: https://www.beefmagazine.com/sites/cet.com/files/3-22-22%20CATTLE%20ON%20FEED%202.png The January cattle inventory report confirms that tighter supplies are coming. [Extracted from the article]

Although the decisions made will vary across different types of cattle production in different regions, all cattle producers should engage in the process of marginal adjustments in production and cost management. With both revenues and costs rising, cattle producers must adjust cattle production and marketing to maximize profits. Specific circumstances for individual cattle producers will determine whether the net impact of higher revenues and higher costs is a need to cut back slightly on production, hold steady, or increase production. [Extracted from the article]

This is a reflection of the backlog of fed cattle and the extended trailing effect it had on depressing cattle prices. B Look ahead b Cattle supply and beef demand expectations for 2022 are optimistic as the national beef cow herd declines due to drought conditions in the northern and western parts of the country. Starting in March 2020, disarray set in motion a chain of events leading to the fed cattle backlog from plant closures slowing the supply chain throughout 2021. [Extracted from the article]

His buy back was a group of steers that were a little lighter than the ones he sold, and they were over thirty-five dollars back from his sell. He sold some of his steers and was able to execute a sell/buy trade. Buyers driving the market This week in the markets one thing was very clear: Buyer desire creates the market. [Extracted from the article]

A look at the markets Just because the market is headed in a certain direction doesn't mean all weights of cattle go in that direction at the same pace. This mindset leaves them fighting the market most years, which is a losing proposition, and every few years the market will bail them out. The harsh reality of a rising market and higher cattle prices is that it only proves how many incompetent fools can make money based on dumb luck. [Extracted from the article]

"This study is probably the first-time high-quality datasets have been used to predict cattle weight gain directly from satellite imagery", said Sean Kearney, Post Doc Research Associate in Fort Collins, CO. USDA's Agricultural Research Service (ARS) developed a unique approach to using satellite imagery to predict cattle weight gain on rangelands. [Extracted from the article]

Byproduct values supported cattle prices throughout 2021. Drop values gain on meat In mid-2020 drop values began building in relative value to their respective live cattle prices. [Extracted from the article]

A cattle buyer told me that every week is an interesting one in the cattle biz. The cattle that the farmers like became greatly over-valued to plain cattle and especially No. 2 cattle. A trend to watch this winter When we compare number one feeders to each other the Value of Gain is getting squeezed with the farmers buying in on lighter weight cattle. [Extracted from the article]