LOOKING UP marketers optimistic following long winter and late grass growth by Managing Editor Stevie Ipsen
If there is anything California cattle producers know, it is to expect the unexpected. Following years of persistent drought and worries that without a good winter, making it another summer would be nearly impossible, residents’ prayers were answered with something they desperately needed – moisture...then more rain and more snow, until some prayers for moisture turned to prayers that the moisture would stop. With rangelands more adequately charged than they had been in the better part of a decade and live cattle prices predicted to continue to rise throughout 2023, beef producers across the west were smiling. But like the usual ebb and flow of the ranching climate the early excitement for a great spring marketing season were put on hold as mother nature’s cool temperatures persisted much later than California is typically known for. Now that the grass has gotten it’s growth, we contacted auction managers and marketing minds in various regions of California to see what 2023 marketing looks like in their respective areas of the Golden State.
18 California Cattleman May/June 2023
RANDY BAXLEY
Visalia Livestock Market RoundupCattle.com South Central California REGIONAL WEATHER: It’s no secret we had a wet winter. We’ve been waiting for one for a few years but in a lot of ways this one gave us more than we could handle. With down fences, washed out roads, it set guys back quite a bit. In most of February when we usually see grass start to come on, we were still seeing nighttime lows in the 30s. Once it warmed up, it seemed like the grass grew a foot a day. It put us about 30 days behind on marketing. At the time we were normally having our second big sale, we were just getting the first of the sale calves delivered. Now we are in a bit of a catch 22 situation because after such deep inventory cuts last year and so much feed, there are less cattle to handle all this grass. Less cattle is also what has led to the high market.
MARKET INSIGHT:
So far, 2023 prices have been great. I am of the belief we will see the market soften as the heat comes later in the summer. Last year good prices lasted through the summer but that isn’t typical. I think it will still be really good but not as record-breaking as we are seeing in early May. The heat risk of delivering calves to the midwest in the heart of summer usually leaves buyers less aggressive. Even with the low inventory we have now, I think we will see some of that. For me, the moral of the story is if you have 650 pound calves, I see zero reason to wait for them to weigh 750 pounds before selling them. You will probably make the same in the end. I also advise buyers to always invest in good, balanced genetics and good vaccination programs. Not only are you setting your operation up for more success in the future, you are also setting yourself up to fetch the best prices the market will allow, even down the road when prices aren’t this high.