Moving Markets
contributed article by Kirk Lynch
Lynch Livestock Inc. and Humeston Livestock Exchange, Humeston, Iowa
Sir Isaac Newton is famous for saying, “What goes up must come down”. Well, that seems to be the trend we have been seeing over the last month or so on the cattle markets. In all, the markets are still very strong and according to the total cattle head count numbers we should all still be very bullish on the cattle markets. It has all been outside factors that have been the cause in the downward trend we have seen.
The dip in the market on the feeder cattle is more of a much-needed correction in the market than anything. Feeder prices have been sky high for the better part of the past year, and it has been very hard for feedlots to find cattle that would project in the black even with future prices in the $180’s and $190’s.
There have been some yearling/grass cattle starting to move and the steers are still bringing a pretty good ticket. Seeing some 900-pound steers still bring in that $255 to $260 range and with heifers being $15 to $20 back. Not many light calves moving which is common for this time of the year, but still seeing several 500-to-600-pound cattle bringing on either side of the $3 mark. There will be several calves that obviously start moving after Labor Day, it will be interesting to see how quickly the empty pen spaces in feedlots get filled.
Fed cow and slaughter bull prices continue to be extremely solid. High-yielding cows continue to bring $140 to $160 and bulls in the $160 to $180 range. This might change as we get into preg checking and bulls being pulled.
Fat cattle have taken a bit of a hit as well, not as much as the feeders but we have taken about a $8 hit over the past few weeks. Seeing some front-end fat cattle still bringing in the mid $90’s through the barns and most cash prices in the country still in the high $80’s and low $90’s.
The breeding stock market has been solid overall. Three things that have kept this market on solid ground are: 1) Plenty of cheap feed 2) Weigh up markets have been extremely strong 3) Cow herd numbers are still down with no sign of rebuilding yet. Seeing some fall bred heifers bringing in the low $3,000 and cows depending on age and quality bringing $2,200 up to $3,000.
Summer is just about over - football, school, and fall is upon us. Wishing everyone a safe harvest and wonderful fall, until next month!
Kirk Lynch, Lynch Livestock Inc., Lineville, 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 Kansas. He is also deeply involved in the 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 (11), Brayden (9), Vivian (7), and Bianca (4).
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