Fall Markets Look Promising
contributed article by Kirk Lynch
Lynch Livestock Inc. and Humeston Livestock Exchange, Humeston, Iowa
Good news on the horizon for cattle producers.
The days have begun to get shorter. State fairs are in full swing, and some people are beginning to focus on harvest, weaning of calves, and bringing yearlings off grass to either market them or put them in feedlots. This past month there have been several positive signs in the cattle industry, and I think we will see that continue throughout the fall.
The fat cattle market has been unseasonably strong throughout the summer, and it has the feeling that the closer we get to Labor Day we will continue to see a stronger market. There just aren’t the numbers out there and cattle continue to come to market at lighter weights with the high feed cost. We are beginning to see a substantial premium given to longer fed and higher quality cattle as once again there just are not the numbers of them out there.
We have seen and heard a lot of cash cattle in the country bringing in the mid to high $1.40’s and have seen some extreme tops in the barn in the mid $1.50’s. The cull cow/bull market has sure taken a jump the last couple of weeks, especially the fed cows. It will be interesting to see how well this market reacts as we see cows come in off pasture this fall.
On the feeder side, things look excellent as we head into the fall. Video auctions are selling some of these guys for prices that are extremely hard to pencil out. Same can be said for what we have been seeing in the auctions as well. Some of these cattle when I put the pencil on them break even in the $1.70’s up to $1.80. It can be dangerous times when you start putting $1,200 to $1,600/head into cattle that are heading to the feedlot. The feeder market will be strong this fall, especially if we get any sort of a strong crop. It is about time that some of the cow/calf guys get paid!
The breeding stock market is somewhat hit and miss. As I just stated, the cow/calf guys are finally going to have a good year this year, but there have been some buys on the cows that we have seen sell. There have been a few cows come back to this country out of the drought country and that will continue to happen if they don’t get any rain. Most of the people in that country are selling off their bottom-end cows, but that will change fast if they continue to stay dry. With the high feeder market, there are several opportunities that make sense buying some bred females.
Well, I hope everyone has a safe and bountiful harvest and we will talk to you next month!
Kirk Lynch, Lynch Livestock Inc., Waucoma, Iowa
Kirk is the Beef Division manager for Lynch Livestock Inc. and oversees all aspects of their backgrounding and cattle feeding operations throughout Iowa and Kan. He is also deeply involved in the newly re-opened Humeston Livestock Exchange in Humeston, Iowa. In addition, Kirk and his wife Mary own and operate Heartland Simmentals in Northeast Iowa, which is a seedstock operation that consists of 500 registered Simmental and Angus cows. They have four children: Gabrielle (8), Brayden (7), Vivian (5), and Bianca (1).