Sandhusker
Well-known member
Hackney Cattle Company / 402.680.4739
Hackney's comments from Monday, May 8, 2006.
*************************************************************************** The views expressed here are those of Walt Hackney and are not necessarily those of DTN, its management or employees. ***************************************************************************
FED CATTLE
Despite a great show of defiance, the Texas, Oklahoma and Kansas feedlots were finally brought to bay by the packers last week, and actually did no better job giving away cattle than the yards in the North, that started the slide at $2 under earlier in the week.
As a packer, making $150 per head or better, the cards are all aces for you and as we all should be aware, the balloons started bursting back in late February, March and through early April, when the massive numbers of formula and contract cattle gave packers the extreme edge in buyer independence. While the minority, the feedlots, sitting with April-May-June cash cattle, suddenly were like that little mouse sitting on a rock, in the last great act of defiance, giving the proverbial finger to an attacking eagle!
There should be no denial that the onslaught of March-April formulas and contracts have led to a large buildup of cattle, of which a large amount are calf-feds, that are contributing to the nearly $18 spread between the choice and selects.
Those low graders, being sacrificed on the grids, are literally taking the hide off the cattle feeders as a result of the spread.
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.
Hackney's comments from Monday, May 8, 2006.
*************************************************************************** The views expressed here are those of Walt Hackney and are not necessarily those of DTN, its management or employees. ***************************************************************************
FED CATTLE
Despite a great show of defiance, the Texas, Oklahoma and Kansas feedlots were finally brought to bay by the packers last week, and actually did no better job giving away cattle than the yards in the North, that started the slide at $2 under earlier in the week.
As a packer, making $150 per head or better, the cards are all aces for you and as we all should be aware, the balloons started bursting back in late February, March and through early April, when the massive numbers of formula and contract cattle gave packers the extreme edge in buyer independence. While the minority, the feedlots, sitting with April-May-June cash cattle, suddenly were like that little mouse sitting on a rock, in the last great act of defiance, giving the proverbial finger to an attacking eagle!
There should be no denial that the onslaught of March-April formulas and contracts have led to a large buildup of cattle, of which a large amount are calf-feds, that are contributing to the nearly $18 spread between the choice and selects.
Those low graders, being sacrificed on the grids, are literally taking the hide off the cattle feeders as a result of the spread.
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.