TSSWCB Announces 2021 Conservation Award Winners

BY EDDIE GARCIA

The hangover from the fall runs is over and the buyers are here to party. Chugging them good quality calves one after another, spitting dip and blowing smoke on the plainer types. There’s just enough cattle out there right now to keep their whistle wet, buy not enough to quench their thirst. Keep Serving Quality...

A 500lb quality steer/ bull calf is worth 12 to 20 cents higher now than October through December 2020. Excellent beef demand coupled with higher than ever exports is really driving the market. Futures market is enabling these buyers to hedge their purchases at a high clip which equates to better prices in the ring.

We hear a lot of debate about how to fix the broken cattle market in relation to what the meat versus the cattle are worth. Lots of talk about government intervention, mandates, and all sorts of stop gaps and fixes. One tried and true fundamental for true price discovery is supply vs demand. This year the overall national cowherd is expected to be drastically less which in turn has signaled the market to move higher. Look for there to be lighter numbers and higher prices this year.

The boogie man continues to be the higher input cost that can rob you of higher returns. Feed cost being number one on the list especially in the corn sector. High cost of gains especially in the feedlot can be an impediment to higher calf prices. Couple that with the volatility that comes with the ongoing pandemics, political climate, and lack of available resources and it adds to the complexities of our business.

Packer cows and bulls are off to a good start as well, we’re heading into a time of year that cull numbers are lighter. Higher yielding carcasses are always at a premium, it is important to keep your herd efficient and identify animals that need to be sold before they become physically depleted. Unproductive females and sires must always be addressed.

Stocker cows and pairs should trade progressively higher this year, due to the market signals of higher calf prices. Albeit moisture and pasture conditions remain favorable going forward which is always a gamble here in our area. 3-6 year old cows are usually in the highest demand with cows 7+ in age deprecate more rapidly in price. Good quality herd sites remain in the 2500 to 5000 range.

I ask that everybody get their “Bull-Fit” together this year, and buy a premium sire that is compatible with your herd. Something that will mark the buyers card after he charges it on that #1 order. Take some simple cows and make them profit centers by putting money making bulls on them. Invest in an asset, forget the liabilities of lesser quality calves.

See you at the Gate! “Bull-Fit” GCLA Eddie Garcia