Cattle prices wow!

[justintime]

Tyson just announced they were closing a beef processing plant in MN due to lack of cattle. 

I have heard many experts say high beef prices are here for at least 5 more years.  Keep in mind those might have been the same experts that predicted great farming income in the late 70's and early 80's...

Take these prices while you can.

BTDT, you are exactly right. This market could collapse tomorrow. Here in Canada, we saw our markets drop from reasonable to zero with the announcement of a case of BSE and for several months we could not sell anything. We just never know when it will happen again.
To those who have been saying that these prices will drive the consumer away, I would remind them that a few short years go wheat prices hit highs of $18-$22/bushel. I don't recall anyone saying that the consumer will be driven away.
It is going to be interesting to see how and if these commercial sale barn prices reflect on fall seedstock sales. My prediction is that the best cattle will sell for even higher prices. The ordinary ones will sell for not much over market.

 

[RyanChandler]

No one is suggesting consumers, in general, will be driven away.  I'm suggesting domestic consumers will be driven away.    For me personally,  I would willingly accept lower margins if it ensured my product ends up in the mouths of fellow Americans.

 

[vc]

People are still eating bacon, what is it running a pound now?

 

[ploughshare]

VC, good point.  Today I saw premium bacon selling for over $10/lb.  I did not see anyone buying that, but they were buying the $5/lb bacon.  I can live with the markets just fine the way they are, especially with corn under $4 and sinking hay prices in my area. Last week I was able to purchase high quality grass hay in large rounds for $63/ton. Two years ago it was over double that cost.

 

[Davidsonranch]

Holy Moly!  Out west our hay prices are crazy due to the drought.  My father in law just sold every bale of plain jane grass hay (I mean plain jane mediocre) hay for $275 a ton.  Alfalfa is over $300 a ton.  Our Diesel is $4.15 per gallon. 

 

[justintime]

The markets seem to be steadily moving upwards yet. Here in Canada, an internet sale this week saw one ranch sell 195 steers averaging  465 lb calves sell for $3.1925 / lb for October delivery. That amounts to $1485.00 / head sold. Today I was told that a set of 400 lb calves hit $4.00/ lb in a Wyoming sale yesterday. I have not been able to find any sale reports to verify this. Has anyone else heard this?

And to those who think the consumer is going to back off on beef, I received a phone call today from a local meat plant asking if I had any animals he could buy and process. He said he has never seen beef move out of his coolers as quickly as it is right now, and he said the steaks are usually sold out first.
I have just returned from taking several donors out to the ET center we use and the owner was telling me of another of his clients selling a 6 year old herd bull last week at the auction market. He came off grass weighing 2460 and he sold for $1.58/ lb or $3888.

 

[hamburgman]

Basset, NE had 604lb steers bring $3.00 a few weeks back.  pound bulls and cows just keep going up.  http://www.sfrlinc.com/site/index.php?id=3