I was sorting and hauling cattle all day Friday then at the end of the day, I looked what the futures had done and wow feeder cattle futures were down from $8.10 per hundredweight to $10.57 cwt lower.
Live cattle futures fell from $4.75 to $5.45 lower. It seemed the week before fat cattle were bringing $230 cwt and after the fall on Friday one day falling the fat price seemed to be $225. That’s a pretty big adjustment on a 1,500-pound steer as that is $75 in one day. I don’t mind taking less for cattle when it seems there is a legitimate reason such as way too many fat cattle for sale.
But it is frustrating when it appears the funds or future traders that have nothing to do with cattle sway our market for no reason other than putting money in their pocket or the packer or retailer. Just because they buy fat cattle $75 per head cheaper than a few days ago doesn’t mean they sell beef any cheaper to the consumer.
However, I will admit it is nice when the funds push our market higher. But it takes such a large amount of borrowed money to make a living in our business. One day selling can often be the difference between profit and loss for basically no reason. One reason for the big move on Friday was profit taking triggered algorithm reversal. I am not a fan of machines making investments or buying or selling on the futures but rather feel and individual should have to place that hedge or bet.
However, the futures board doesn’t care as long as there is maximum movement regardless of who it affects.
In our area July 25 we received a little rain that didn’t last long; however, thankfully starting Aug. 17 until now we have received several rains changing our area from brown, dead looking grass to some wheat pasture that could have some calves turned out on. I want to tell God thank you.
I was in a store and a woman looked at me and said, “Every time you smile I just want to take you back to me place.” I said, “Why are you single?” She said, “No I’m a dentist.”
I let my blind friend borrow some money from me. He told me he would pay me back the next time he saw me.
I asked my high school teacher, “Will I ever use algebra later in life?” She said, “No, but some of the smart kids will.”
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 and grew up on his family’s ranch near Slapout, Oklahoma.
