At some point cattle prices will change direction
I’m amazed that sometimes cattlemen lose track of reality. I have had several say to me that perhaps cattle prices will not go down again.
That is not a good frame of mind to be in. Don’t get me wrong, it looks like the cattle market should stay good for a while, but there are lots of factors out there. Lower grain prices have made higher feeders. On several of these feeders going into the feedlot the interest on the cattle is either side of $100 per head. Plus the risk there with most betting on a higher fat cattle market when these livestock get fat. Some have made some tremendous profit with two feeders telling me they made $800 per head before interest on the cattle.
It always seemed before that when we thought we had an opportunity to go higher in the beef market then packers were allowed to import more beef. Maybe other countries are short of cattle themselves or maybe tariffs will stop that. And maybe tariffs will keep them from buying as much? All I know is enjoy it. You may not ever see those kind of profits ever again.
However, at noon Monday, I looked at the cattle futures and they are all up again. I can’t believe it. The word “High” is often just higher than we are use to. I guess I just fear if and when we tumble that it will knock out a lot of cattlemen. I put on several feeder cattle insurance contracts for protection and it is at a lot lower figure than we are today. However, after I donate my insurance money it looks like I will still get to enjoy a very high market.
We were short of moisture earlier compared to the rest of the state; however, in some spots we have been fortunate to catch several small rains. I have one pasture that was in the right spot that has the best grass I have seen there in 40 years. And a few miles from there the cane field looks mediocre or worse.
I was loading cattle this morning where the grandpa, son and grandson were at. The 4-year- old grandson got on the gate and grandpa was swinging him around and laughing with his grandson. The son said, “When I was his age Dad always hollered ‘Get off the gate you will make it sag.’”
I saw a post that said on marriages between a man and woman 49% get a divorce. Between two men only 29% get a divorce. And between two women 72% get a divorce. It said, “ladies we men are not the problem.”
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.
