Feeder calf prices down at most recent local sale
Prices at last week?s feeder calf sale must be shocking for anyone who doesn?t follow the market.
Feeder calf prices are down considerably from a few months ago. Of course the fact that cattle feeders are paying twice what they were for corn a year ago has a big factor in this decline.
Slaughter prices are about the same as they were back in August compared to feeder calf prices which have declined about thirty cents per pound over the last three months. Fed cattle sold for mostly $85.50 to $87.50 last week The 5 area price was $86.36 live and $133.85 dressed compared to $85.67 live and $134.37 dressed a week ago. The rise in cash prices contributed to a sharp increase in fed cattle futures of $1.05 to $1.55 through June ?07.
We?re selling meat to Japan again, and it looks like Korean sales are going to get started. That?s good news but keep in mind that back before the BSE scare the U. S. only exported about 10 percent of its production each year.
During the fall of the year when the biggest part of the calf crop comes to market calf prices decline. Folks the reason beef is slower is the large number of calves coming to market and the high prices for corn.
If it takes 40 bushels to finish a 700 pound feeder that animal must be bought $62 per head or about $9 per hundred cheaper if we assume the same selling price when finished at 1200 pounds. Last year in Tennessee the weighted average price for 600-700 lb. feeder steers for the last Friday in October was $107.00 /cwt. Last week they brought $90 at our feeder calf sale. Corn in Omaha was $3.25 per bushel versus $1.66 a year ago. It has reportedly reached $7 per hundred in the Southern Plains
Listed below are the prices from the most recent feeder calf sale here at Warren County Livestock. Just over 1,900 head of cattle were sold. The prices listed are for #1 and #2 quality Black, Black Baldy and Charolais X feeders.
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Med and Lg 1
Steers Heifers
350-400 lbs 119.00-123.00 94.00-95.50
400-450 lbs 109.50-116.00 88.50-93.00
450-500 lbs 102.50-112.50 85.50-87.50
500-550 lbs 99.75-102.50 86.00-87.75
550-600 lbs 93.25-96.75 83.50-84.50
600-700 lbs 87.75-90.75 82.25-83.25
700-800 lbs 88.10-92.00 78.50-81.50
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Med and Lg 2
Steers Heifers
350-400 lbs 117.50-120.00 95.00-99.00
400-450 lbs 106.00-109.50 87.00-89.00
450-500 lbs 96.50-98.00 83.50-87.50
500-600 lbs 92.00-92.50 83.75-85.00
600-700 lbs 83.00-86.50 80.50-81.25
700-800 lbs 83.00-86.50 74.50-76.50
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SPEAKING OF CORN PRICES
Dr. Delton Gerloff, UT Extension Grain Marketing Specialist, advises farmers to stay in the corn market by storage or with options.
Dr. Gerloff also advises corn producers to take a look at a December 2007 market that is just over $3.40 per bushel. Cash corn prices ranged from $3.40 to $3.74 across Tennessee Thursday. The December futures price closed at $3.515 Thursday, 1.5 cents higher than last Thursday?s close.
Prices have leveled off over the past two weeks after an impressive 8 week climb.
Consider selling corn out of storage on price rallies. I see next spring as a very volatile market situation, with large price moves possible. Consider holding on to a portion of 2006 production either by storing or buying May or July call options. Dr. Gerloff?s market contents can be found weekly at the following website. http://economics.ag.utk.edu/tnmkt.html
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PERFORMANCE TESTED BULL SALE IN MURFREESBORO
This year?s University of Tennessee On-Farm, Performance-Tested Bull Sale will be held in Murfreesboro on Wednesday, Dec. 6, at the Tennessee Livestock Center. The sale will begin at 11 a.m.
This year?s sale consists of 46 Angus bulls and two Charolais bulls consigned by 15 breeders from across the state. All of these bulls have been on a 112-day gain test on the producers farm, said David Kirkpatrick, a beef specialist with the Agricultural Extension Service at The University of Tennessee.
All bulls will be at least 15 months old but younger than 30 months old. In addition, all bulls consigned must have passed a breeding-soundness examination within 30 days of the sale. Complete performance data on the bulls from birth to 1 year old is available. The catalog can be found at the following website: http://animalscience.ag.utk.edu/beef/bulltest.htm You can also get a copy of the catalog here at the Extension office. Just give us a call.