The Market Report

March 2, 2021

 

 

This is the first week we have seen an increase in numbers for the cattle sale. The quality was outstanding and the market was also great. Cows were steady bulls a little higher but no real outstanding bulls to sell yet.  It’s a little early for the high yielders to show up, but they will be coming soon.

If anyone has a question on the sale of phantom cattle and our efforts to eliminate that part of the futures trading keep the following in mind. We are selling fat cattle lower than last year at this time and the boxes are priced higher.  In fact, second highest in history. It’s allowing the packer to make $400/head on our cattle while the feeder is losing money.  Please don’t think that the elimination of selling phantom cattle is the whole answer but it’s a start in the right direction and needs to be addressed. There will be other benefits from the elimination of these contracts that we might not think of, for example, end users of the boxed beef will be able to purchase loads of fat cattle on the board, take delivery of them and have them packed in their own boxes.  These boxes would be dollars cheaper than the big four packers are selling them in their boxes now. The elimination of selling contracts on the futures will also give the feeder more control over price and cut the funds out of selling contracts in an effort to drive prices down. This will only add value to the fat market.

 

There have been a lot of questions about selling NHTC cattle this year. Last year we opened up a new market for these calves and weaned yearlings that are approved. In order to save the producers money, we have worked with Sampson to get qualified cattle approved and it has allowed us to hire two women, Callie Whitney and Isabella Hacker to approve cattle and do it in a more cost-effective way. It will allow some smaller producers to enroll in the program and get the price advantages of this program. Last year we were able to start selling to the end users.  It was a great program and the prices were a significant jump to commercial cattle. We are ready again and have been given the go ahead that they would like more cattle this year than last. So, if your calves are angus sired, NHTC approved, double vaccinated to our standards then we have the green light to buy these cattle and send them East. If you have questions please call me personally.

 

We are all praying for rain Saturday. It could produce more feed than we might expect. However, if it fails to rain, the cattle will start to come to town in an effort to save the cows.

 

Jim Warren

831-320-3698

Here are some representative sales from this week’s auction:

 

7 Blk, B BR 357# steers sold for $171.00

31 Blk, BWF, B BR 499# steers sold for $164.50

17 Blk, Red 520# steers sold for $159.00

19 Blk, BWF, B BR 596# steers sold for $148.00

13 Blk 597# steers sold for $145.50

20 Blk, Red 611# steers sold for $139.25

12 Blk 728# steers sold for $132.00

 

6 Blk 378# heifers sold for $144.00

13 Blk, B BR 380# heifers sold for $141.00

11 Blk, BWF, B BR 398# heifers sold for $137.00

17 Blk, B BR 476# heifers sold for $140.50

16 Blk, BWF, B BR 583# heifers sold for $121.00

11 Blk, BWF 591# heifers sold for $127.00

Cows

Breakers 60-65

Boning Utility 55-60

Cutters 45-55

Bulls

High Yield

Others 78-83

 

 

Dates to Remember

 

Small animal sales will be moved to 12:00 pm on Tuesdays starting April 6, 2021

 

All cattle sales will continue to be held on Mondays