Fed Cattle Commentary

[Anonymous]

Fed Cattle Commentary
05/27 11:20

Hackney Cattle Company
Hackney's comments from Friday, May 27, 2005.


FED CATTLE

At the very best, you would describe the past week or 10 day's cash trading as nasty and the only plus to be seen is the possibility that we have cleaned out the major portion of the freebies (formula) cattle set up for May and early June. Whoever dreamed up the expression that formula selling never had any negative effect on the prevailing cash markets was smoking a poor grade of dope!

Feedlots could have used a better cash incentive the past week in order to encourage more liquidation within the show lists and any carry-over of cash cattle into the holiday shortened week, next week, will not be an asset to bargaining power.

Anyone feeling content about our feedlot inventory only needs to look at the average carcass weight increases every week lately, to realize we are gradually building up the live cattle inventory in both weight and available numbers.

*************************************************************************** The views expressed here are those of Walt Hackney and are not necessarily those of DTN, its management or employees. ***************************************************************************

FYI: Walt Hackney's practical insight into the livestock markets, also dictates that he spend much time in the production areas, buying/selling cattle, and periodically he cannot do his daily commentaries in a timely manner.

 

[Jason]

To take this at face value would mean there are no more formula cattle in the system after the end of May.

Those said formula cattle were sold willingly, or at least the sellers thought it was the best deal they could achieve.

The higher carcass weights is a continuing indication of lower demand that was predicted by Agman LAST SUMMER.

Hackney looks like a blamer to me.

In Canada things are in a similar vicious circle, feedlots keep the cattle longer to make the money they want/need and it puts more beef in our coolers to move.

The packers need bigger carcasses to pay the same dollar, as killing costs are not much different between a 1200 pound steer and a 1500 pound one, but the retail product is 150 pounds more.

If the gov't was to subsidize the industry maybe an incentive to finish cattle at 1200 pounds would be a good one.

Jason

 

[agman]

Fed Cattle Commentary
05/27 11:20

Hackney Cattle Company
Hackney's comments from Friday, May 27, 2005.


FED CATTLE

At the very best, you would describe the past week or 10 day's cash trading as nasty and the only plus to be seen is the possibility that we have cleaned out the major portion of the freebies (formula) cattle set up for May and early June. Whoever dreamed up the expression that formula selling never had any negative effect on the prevailing cash markets was smoking a poor grade of dope!

His comment only displays his lack of knowledge of the total market. I guess a seasonal peak in beef demand by mid-May has no impact on the market-blame it on formula cattle. Carcass weights rising faster than the seasonal trend could not possibly indicate that marketings were backlogged-blame it on formula cattle. The mere fact that BE's are high with cheap feed and high replacement cost could not possibly encourage producers to feed to heavier weights-blame it on formula cattle. Why did producers respond the same way to the same economic factors before formula cattle ever existed-blame it on formula cattle!

The aforementioned response displays the total lunacy of his conclusion. Ignorance of the facts causes one to reach such ridiculous and unsupportable conclusions. I guess he could just could not hide that fact that he got a hold of some bad dope.