Good morning. I am watching US Farm Report this morning and there was a segment on cattle feed yards. A Texas feeder was featured on the segment and he said that his feed yard had lost 35 dollars per hundredweight on each animal in the last 45 days.
A large stockyard can probably withstand this however prices like this can shut down a feeder. I decided there was too much chance for loss feeding out young cattle in the spring of 2014 and began custom grazing for cow/calf producers. It was a good decision.
I believe we will see feeder prices and fat cattle prices come down even more as there are some very large animals at feed yards right now and they will keep the beef pipeline full for some time. The last segment of cattle to reduce in price will be the cow/calf segment. I say good for them because they suffered for years with low prices.
I could be wrong about this and I have no crystal ball but it feels to me that we are headed for a mild version of the late seventies early eighties farm crisis and then a recovery to a farm economy something like we had in the early 90’s.