Welcome to the Friday edition of the HOT BARN REPORT
Heard ONLY on American radio stations across the nation and online at hotbarnreport.com!
Karina Jones, Field Director for R-Calf USA joins us each Friday from her ranch in the heart of Nebraska covering new and important cattle industry news and policy.
C’mon, man, where are the $1.70 fat cattle? Welcome to this special Friday edition of Hot Barn Report.
Straight Fire! That is the best way to describe these yearlings and fall calf prices we are seeing at the Hot Barn Auction Markets! I am cheering the loudest for those producers pulling those well-deserved checks! It will be a burden lifted off their shoulders to pay off some debt and recoup some equity on the ranch balance sheet. You would think that $1.70 fat cattle are on the horizon spurring this buying optimism, but we aren’t seeing that either.
As I have talked about in past weeks, we all know there continues to be massive herd liquidation as the southern US is scorching and drought conditions persist throughout much of the Plains states too. While we are seeing tighter supplies of calves, the mix of steers and heifers is also of interest. As reported recently in BEEF Magazine, “The percentage of heifers has ticked higher in recent years which is another signal that herd expansion is not occurring. The average weekly heifer percentage is 44 percent so far in 2022.” This is a couple points higher than the five-year average. No expansion in sight.
Infact, for years the experts have told us, “Just hang on! The cattle cycle will swing back in your favor.” They apparently weren’t talking to the independent feedlot owners that are trying to compete for these tightening supplies of feeder cattle.
But, many like me, have been pushing the pencil and coming up bleeding red all over the paper. How does one take those 753 lb steers that sold at Bassett Livestock for $2.20, and feed $7 corn against a board that has February fat cattle currently at $1.51? Thebeefread.com reported that the industry has at least 200,000 fewer fed cattle available to slaughter for the rest of 2022 than compared to a year ago. So, I ask again, “Where are the $1.70 fat cattle?” If the cattle cycle is returning 2014 inventory levels, shouldn’t all sectors of the industry be reaping the benefits?
Two scenarios have changed the complexion of the post 2014 landscape. We lost Mandatory Country of Origin Labeling. So, packers no longer have to rely on domestic supply to fill the meat counter. By law, they can import, repackage, and slap a “Product of USA” label on it. Second scenario, we have lost tens of thousands of independent feeders. Our industry is far more vertically integrated than 2014. Corporate feedlots have sweet heart deals that no one else gets details of, nor gets access to, allowing them more market power in feeder cattle market over the farmer feeders and independents that are at the mercy of the cash market. They don’t have to pay attention to that February board, they have other risk protection gifted to them.
I propose that we reinstate Mandatory Country of Origin Labeling back on beef so we can return more of that consumer dollar back to where it belong, in rural America, since herd liquidation doesn’t seem to be promising us $1.70 fat cattle! Call that capital switchboard at 202-224-3121 and urge your lawmakers to co sponsor The American Beef Labeling Act, S. 2716 and H.R. 7291 in the House!
Come back on Monday and Monte will have all of the action from the hottest barns in the nation:
Crawford, Presho, North Platte, Lemmon, Torrington, Mobridge, Platte, Stockman’s, Creighton, and Bassett!
NOW AIRING ON:
Rural Radio Sirius XM Channel 147
Monday-Friday 7:55AM & 4:55PM
The HOTTEST sale barns in America
See more at HOT BARN REPORT
As always buy ’em up online at CattleUSA.com
Creighton Livestock Market
Lemmon Livestock, INC.
Presho Livestock Auction
Mobridge Livestock
Platte Livestock Market
Stockmen’s Livestock
Crawford Livestock Market
North Platte Stockyards
Bassett Livestock Auction
