Markets

[kato]

I'm probably going to start something here.. but any opinions on this market? As cow-calf producers, we are delighted, but as backgrounders, we are quite frankly very nervous. It's going to be an interesting winter, I think.

[bard]

I have just recently heard the same concerns from feedlots in our area. It suprised me, because it was my understanding that the good prices were based on good times in the cattle indusrty. They tell me that the cattle on feed reports in the U.S. aren't acurate and when the markets realize this prices my fall. Currently they will be losing $150 per head.

[kato]

I know..they keep saying there is a shortage of fats coming, and it never seems to show up. This puts the feeders up, but the fats don't seem to want to complete the picture. It makes you wonder if someone is fudging their numbers when it comes to these reports. The prices are great for the cow-calf operators, but if those who buy our calves start losing big money, they will back off. We usually buy several hundred calves to background every fall, besides our own calves, but are really nervous this time. Maybe it's a good fall to take the money and run?