This week in cattle we saw yet another rise in slaughter numbers setting another record as the most cattle slaughtered in a week since seven years ago. Six hundred and sixty six thousand head reported this week with five hundred and fifty thousand of those harvested being feed yard steers and heifers. Packers continue to be in control as even though we are seeing record number of cattle being harvested, packers continue to bid below asking price on cattle ready to be harvested now. Are you confused yet?
The cattle being harvested are cattle that were contracted two to four weeks out for delivery now. Packing houses are running at ninety percent capacity and really do not need cattle that have not been contracted and are ready. Asking prices on show list cattle are a t 1.15-1.16 and packers were offering 1.10 this week. However analyst seem to be pleased with bids being over a dollar due to the record high numbers of cattle packers already own.
The reasoning that there is still interest in fat cattle at a price over a dollar is due to the rise in exported beef we are selling right now. Even though this is our grilling season, it is not necessarily a high beef consumed season overseas, leading analyst to believe overall demand for U.S. beef is rising. Last week we sold five hundred and fifty loads of boxed beef overseas and this week we sold almost fifteen hundred loads of boxed beef overseas. With this type of export demand at this time we can assume positive things about the demand for our beef in other countries despite the fear of tariffs the current administration is proposing.
Other countries have spoken to let us know that they want to buy U.S. beef. Hopefully we will be able to maintain this interest and higher profits will be seen by producers as well. Feeder cattle buyers were bullish this week as they were buying up cattle to replace the cattle that they had sold weeks earlier with some 816lb steers in Kansas selling for 149.90 and some 859lb steers in Nebraska selling for 138.50. There doesn’t seem to be a whole lot of demand as of now for lighter calves as drought conditions and the uncertainty of grain prices make placement of such cattle an obstacle. Profit margins seem to be higher for producers who are able to hold out for heavier weights to market their cattle.
We saw some small framed pairs this week in Georgia bring 950.00 per pair and some top end first calf pairs out of Montana bring 17,00.00 per pair.
Some selling livestock rather than buying Hay
On the Hay side of things this week we received reports of conditions in Colorado making it difficult to get that number one quality alfalfa their know for out early. Some replanting is taking place as seventy-five percent of the state is in some type of drought category. Hay prices continue to remain high as we see continuous demand throughout the U.S. with drought conditions. Some producers are opting to sell livestock rather than buy scarce hay at today's prices.
If you have some for sale be sure and get it listed as we have people all across the U.S. looking for different types of hay. In Oklahoma this week good alfalfa in large square bales traded at 180 to 200 dollars a ton. 4x5 bales of grass hay sold for 35-40 dollars a bale and wheat 90-120/ton. Small alfalfa square bales in Kansas sold at 240-250/ton with a high demand and small coastal square bales in Texas traded at 10 dollars a bale.
Colorado had some premium alfalfa horse hay trade at 370/ton sold by a retail location. If anyone in Dallas/Fort Worth Texas area is looking for some quality alfalfa horse hay be sure and email us at 55 Farms, we have a member who is delivering in that area and can make arrangements to get you what you need.
Demand for Drills and Hay Equipment
This week in equipment we saw a repeat of last weeks demand of cheaper used equipment that is still in working order. Demand in drills and hay equipment seems to be strong this time of year. This week a hoelscher 1000 bale accumulator in Kansas brought 2,9000.00 and a 2014 John Deere 265 six disc cutter in Minnesota brought 4,700.00. We also saw a John Deere 717 seven foot shredder in fair condition bring a 1000.00 in Texas. As we mentioned in a previous newsletter big equipment companies seem to be acquiring more and more smaller companies. This week it was reported that AGRO deviate acquired W&A Manufacturing company. Only time will tell what all this acquisitioning means to farmers and ranchers. We would hope to believe that the overall goal is to provide better, faster service as well as products and not to corner the market with set prices.
Arkansas/Oklahoma Farm show
Last week I mentioned the Arkansas/Oklahoma Farm show coming up in September, as it draws near I will remind our members once again. This week I want to Let you know of the farm show coming up in Fort Smith Arkansas October 26-27. If you are interested in attending this show as a vendor give Tracy McMillen a call at 479-806-3080. Also if you have a Farm Show coming up in your area and want us to mention it, feel free to email me the information.
Casey Collin - www.55farms.com