Feeder cattle futures for next August, September and October are all from $173 to $174.80 per hundredweight. This seems pretty good to me.
I sold some feeder cattle futures on insurance for the past few months and that did cost me some money; however, it seemed good at the time from $150 to $160. The part that I like on the insurance deal is I didn’t have to make margin calls and they settled it in the end.
We do have some of our area that has wheat pasture but other areas had to plant too late. The calf market has gotten better the last four or five weeks. We sold some steers that weighted a little over 1,000 pounds that brought $151 per hundredweight and some 850-pound steers that brought $159. And some weaned steers at 550 pounds that brought $173.
Our cow killing market showed some pressure on the thinner cows but looked good on the fleshy cows. From this time of year through the winter the yield on cows goes down fast. Often a rancher does not realize they are getting thinner and getting as weak as they are and they cannot stand the stress as well when they are that way.
For the past year when feeder steers are bringing at least $1,200 and some now $1,500 and heifers $1,000 and sometimes $1,200 at least that makes you feel like you have a chance to make some money. A couple of years ago when heifers brought $800 and steers $1,000, I felt like I was treading water.
Feeder cattle are in very short supply. But it stands to reason that most cattlemen sold their feeders a month or two ago when we thought feeders were high. Grain keeps edging up some too; however, I look for feeders to stay good as a lot of those big corporation feedlots have certain quotas of fat cattle they have agreed to supply the packer.
A friend of mine went to the doctor for colon surgery. After the surgery the doctor came out and told my friends, “I have some good news and some bad news.” My friend said, “Well, what is the good news?” The doctor said, “I was able to save your testicles.” My friend said, “Well then what is the bad news?” The doctor said, “They are in a jar.” I didn’t want to put that in here but the devil made me do it.
That same doctor is known as the good and bad news doctor. So another friend who has always had one leg shorter than the other one went in for surgery. The doctor came out and said, “The bad news is I amputated the wrong leg—your good one. My friend said, “What is the good news?” The doctor said, “I think I can save your bad leg.”
Editor’s note: The views expressed here are the author’s own and do not represent the view of High Plains Journal. Jerry Nine, Woodward, Oklahoma, is a lifetime cattleman who grew up on his family’s ranch near Slapout, Oklahoma.
