grassfarmer, I think there are a couple of factors at play here with light feeders selling so well. I think there are some American and Canadian buyers speculating that the border will open by the time these light feeders are grassed, then finished next fall (likely to finish around December or January). There are some guys like my neighbour who has too much feed (swaths) this year and who bought calves three weeks ago just to use up the swaths and thence to grass. There are lots of guys who grass every year and will buy calves no matter the cost because their land is paid for and the grass grows and it's rough ground so they can't hay it. There's lots of guys like that. Then there are the feedlots who are still trying to recoup their losses.
I run a cow herd and grassers and background feeders so I guess I see a little of every side. I will generally buy between 300 and 500 grassers every year to run on rough range near Lac La Biche. So what should I do this year? If I buy them I'll likely be paying too much like everyone else currently is. But if I don't the land may sit idle or I'll have to contend with renters which, to be blunt, is a pain. That, I think, is the biggest reason for the high price on light calves--all the ranchers who grass cattle are in the same bind--they basically have to buy every year.
We all know how optimistic producers are--always looking for a better next year but feeders, I think, are even more optimistic. A feeder will keep buying calves until the bank says no because he is always hoping to make a profit and wipe out his losses from previous pens. I think light feeders will continue to trade high until the feedlots absolutely can't buy them. But grassfarmer it is a very bad sign for future prices to see the heavy feeders and fats trading so poorly because it means that eventually the guys who own these heavy feeders are going to run out of money to buy the lights.
Grassfarmer, the biggest problem with this open again, closed again border is that it wears a person out not knowing what the future will bring and trying to make major business decisions based upon ????
I guess hope springs eternal in the feedlots and grass operations in this country.
kpb
I run a cow herd and grassers and background feeders so I guess I see a little of every side. I will generally buy between 300 and 500 grassers every year to run on rough range near Lac La Biche. So what should I do this year? If I buy them I'll likely be paying too much like everyone else currently is. But if I don't the land may sit idle or I'll have to contend with renters which, to be blunt, is a pain. That, I think, is the biggest reason for the high price on light calves--all the ranchers who grass cattle are in the same bind--they basically have to buy every year.
We all know how optimistic producers are--always looking for a better next year but feeders, I think, are even more optimistic. A feeder will keep buying calves until the bank says no because he is always hoping to make a profit and wipe out his losses from previous pens. I think light feeders will continue to trade high until the feedlots absolutely can't buy them. But grassfarmer it is a very bad sign for future prices to see the heavy feeders and fats trading so poorly because it means that eventually the guys who own these heavy feeders are going to run out of money to buy the lights.
Grassfarmer, the biggest problem with this open again, closed again border is that it wears a person out not knowing what the future will bring and trying to make major business decisions based upon ????
I guess hope springs eternal in the feedlots and grass operations in this country.
kpb
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