Market Volatility Greets Producers This Spring

Another national convention in the books. I especially want to thank the staff and producers who attended. I know it’s not easy getting away from all the farm work.

I also congratulate the Top 5 Collection Points on their awards. There are between eight and ten who are in the running each year, which says our livestock staff do a terrific job. They all put a lot of time and effort into helping producers and securing the numbers.

Our annual winter meeting was a success, with good food and drinks, and great conversation. Jeff Rose and I have had similar conversations about the CME at the past several conventions. On Monday in Pewaukee, the market was at $203.60 but by the end of that week hit $211.12. Quite the run.

Of course it fell out of bed after that, but all the experts said it needed a correction. Despite hitting a record high, with the cost of feeders and inputs, I would definitely take a look at contracting. With an unpredictable tariff situation, it’s hard telling where the cattle market is heading. We are very tight on fed cattle, and it will remain that way for at least a year or two.

Feeder heifers are bringing record highs and cow-calf producers are selling instead of retaining. It’s been that way for two years. If tariffs do apply to Canadian cattle, it will also shorten the supply in the U.S. We slaughter a boat load of cattle from Canada on a weekly basis.

Cull cows are much the same way. Record highs since the end of January, and they continue to go up. That should also be the case as we get into spring and summer months.

Feeders remain at record levels also. With three-day old Holstein calves bringing $800.00 plus and crossbreds over $1000.00; let alone 700 pound steers over $3.00/ pound, the fed market needs to hit $220 or better.