Oct. 30, 2018
The past few weeks we have had quite a few deliveries on cattle. We are making the market work the way it should.
The deliveries have been scattered to quite a few places, and West Point, Neb., which is newly established, received some.
I like to see deliveries on cattle. It is an alternative way of marketing and provides instant ability to lock in price and show that the market is working.
We have had a market that has stayed sideways for quite a few weeks in the cash. Cattle finally broke out to the upside last week, with cash cattle trading $114-$115 and dressed cattle at $176-$180.
Last week was do-or-die week, and we did survive by pushing cattle higher.
Composite box meat negotiated 22-day-and-up sales came in at 1,376 loads. NAFTA exports were at a measly 103, but overseas exports were at 1,100 loads, which is great.
These types of markets enable people to cash in on higher prices. Hopefully we moved a good amount on the show list — figures will be available later. A number of people are quite bullish with higher numbers in mind. We will have to wait and see on that part of the spectrum.
Lately the weather has been conducive to good gains but has been hard on the health of feeder cattle that are being brought in. This past week I treated two fall calves out in the pasture for pneumonia. This is because of the wet weather we had and the changing temperatures from day to night.
This week there are going to be several big feeder cattle auctions. This is when we start filling the yards from north to south with calves and yearlings. The calves will go into the feed yards and then be heading for wheat pastures when it’s tall enough to graze.
The grain market is in a consolidation phase — getting more of the harvest done and looking for buyers.
China has had a considerable amount of African swine fever. They are changing their rations by cutting back on both bean meal and the percentage of protein.
They are still bringing in beans from South America, and I would imagine Canada and Argentina may still be pulling in U.S. beans.
President Trump is supposed to meet with President Xi, but it is going to be after the elections. So there will be no game changer for the farmers before the elections.
I think the goal of most farmers is to get the crops harvested, put away the amount that has been presold to the elevators, and sit back and see how long they can make the cash from insurance payments and the government payment due to the tariffs last.
I hear from quite a few sources that there are not going to be loans extended to some farmers who are having a hard time servicing debt.
We continue to watch the grain market look for direction and have been in a sideways to higher direction since about Sept. 18. These types of markets are always looking for news. As they say in bull markets, you need to feed a bull every day and a bear only once in a while.
Good luck and good marketing.
This weekly report is for informational purposes only and is not to be construed as an offer to sell or a solicitation to buy the commodities listed herein.