The current cattle market can be distracting. Record high prices, while certainly a good thing, can leave many cattlemen in a state of awe and amazement. Instead of getting caught watching high prices this fall, your time will be better spent monitoring the cost side of your cattle business.
Cow/calf producers can significantly reduce costs by extending the grazing season, delaying feeding of purchased feeds. Common sense and research both tell us cattle are most profitable when they are harvesting their own feed. Allowing cattle to graze into late fall and early winter is crucial to reducing costs. Even with lowering commodity prices, grazing is still the cheapest way to feed cows. Stockpiled forages, cover crop forages, and grazing crop residue are all options for extending the grazing season.
Cool season forages, especially fescue, are excellent candidates for stockpiling. While fescue may garner a bad reputation for endophyte issues and poor production in the summer months, fall is a time to shine for fescue. Cool temperatures in the fall negate complications with elevated body temperatures when cattle are consuming endophyte infected fescue. Re-growth in the fall is….
The USDA released the September Cattle on Feed Report Friday. Cattle and Calves on feed as of September 1, 2014 totaled 9.8 million head, 1 percent below last year and 5% below the 5 year average. Placements during August totaled 1.72 million head, 3 Percent below 2013. Marketings of fed cattle during August totaled 1.69 million head, 10 percent below 2013. Both Placements and Marketing were the lowest reported since the series began in 1996. Cattle on Feed and Marketings were right in line with the average trade guesses. However, August placements were about 1% higher that the trade expected. These results are based from surveys of feedlots with 1,000+ head in 16 states. As of this Monday morning this has given some pressure to Live Cattle Futures. Futures are down between 50-75 points with more pressure to the deferred months.
Source: FC Stone
This is intended for informational purposes only. Trading may not be suitable for all investors and may involve substantial risk of loss. You should fully understand those risks prior to trading. Past financial results are not necessarily indicative of future performance.
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Dwayne Faust, along with his wife Tanise and children Will & Emerson, own and operate Faust Farms in Caldwell, TX. Faust Farms is a diversified operation consisting of a cow/calf herd, custom hay baling, and distributing MIX 30 around the greater Caldwell area. Dwayne has been distributing MIX 30 since the Fall of 2010 and has been consistently one of our top dealers in the state of Texas. We would like to say thanks to Dwayne and his family for there devotion to meeting the needs of there customers and representing MIX 30 in the Caldwell area.
If you would like to visit with Dwayne about how MIX 30 can go to work for your operation, feel free to give him a call 979-412-3794.