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Observations from a bred cow sale this week

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Soapweed

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On Wednesday, there was a bred cow sale at the Sheridan Livestock Auction in Rushville, Nebraska. Enthusiasm ran high, and it was a jam-packed full house with every seat filled.

Bred heifers topped out at $1550, with more at $1500, and many bringing from $1450 to $1480. Straight black heifers weighing 1150 to 1200 pounds with a calving date of February 1st commanded the most money. Black baldy heifers and red heifers brought about $200 less. A rule of thumb seemed to be for every month later calving date, a hundred dollars would be subtracted. If a consignment of February 1st calvers brought $1480, their sisters with a May 1st calving date would bring about $1180.

One group of top-of-the-line three and four year old Angus 1400# cows came into the ring. It was announced that at least one bidder had five cows out of the group of 27 marked down as "the best" and that if he got the bid, he could pick out those cows. Those five selected cows brought $1700. Interestingly enough, when the bidding started again, the remaining 22 head brought $1750.

The gentleman sitting next to me said that when he got home that night he planned to put his cows in the kitchen of his house. He said they were too valuable to leave outside in the cold. He had brought a stock trailer with him from a hundred miles west, and had hoped to have it full of bred heifers for his return trip home. He bid up to $1350 on several bunches of heifers, but always got shot out of the saddle. He saved gas on the way home, because he just had to pull his empty trailer.

There looks to be optimism in the cattle business. It is exciting, and I hope it lasts. Japan opening its borders to American beef can only help.
 

Aero

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i guess you are talking about Harlan Hughes. I was just thinking about his statement that the cattle market is headed down now. It's good to hear about enthusiasm being up. i would like for him to be wrong on this one. :)
 

Rowdy Ranch

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Yes,certainly hope it lasts! Belle Fourche had a sale with similar results a week ago or so. Don't seem to be that high here,But not the quality of cattle here either. Cattle are the only bright spot in ag right now. Have a great day!
 

Denny

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Faster horses said:
Thanks for your observations, Soapweed. I would much rather read what a rancher saw/thought than some of the disected versions that folks like Harlan Hughes come up with.

Harlan Hughes was at a cow/calf day a few years ago when prices were low he said we should all be happy at just breaking even.A guyin the crowd asked him if he went to work everyday just to break even his answer was no.The rancher replied than why should we kinda clipped his wings that day..

March 1st calverswere $1310 today 1100# black heifers some middle aged cows were $1310 to $1450 black cows
 

YoungFarmer

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All I can do is look south on the pastureland we were hunting on along the border and tell myself someday I will reach the "Promised Land." IF I could sell our herd of cows for $765 U.S a piece I would be happy. Perhaps if the border opens to OTM and breeding cattle next year I will reach the "promised land." Paying $1400 for a bred cow seems risky for me and hard to pencil out even if I was a U.S. rancher.

Not sure if the border will open up to breeding stock or just OTM cows destined for slaughter but I would think their would be a good potential payoff for some one to purchase young bred canadian cows, have them fed and bring them in late next year.
 

cowzilla

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Ever notice Bankers aren't interested in lending money for $800 Cows but a couple years later when Cows are worth $1400 they are breaking down your door to lend you money :lol: :lol: And we all know which ones are going to pay for themselves :!:
 

Jinglebob

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cowzilla said:
Ever notice Bankers aren't interested in lending money for $800 Cows but a couple years later when Cows are worth $1400 they are breaking down your door to lend you money :lol: :lol: And we all know which ones are going to pay for themselves :!:

I thinkI figured out why. More dollars loaned out = more intrest paid! :lol:

Seriously, a pair is going to cost x amount of dallors to run for one year. When calves are worth 400 a head and cows are selling for 800 a head and it cost 400 to run a cow for one year, there is no profit.

When calves are selling for 600 a head and cows are selling for 1200 a head and it costs 400 to run a pair there would be a profit of 200 per pair.
 

Denny

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I think banker's are plain stupid just listen to them talk...Whatever the banker think's is a good idea do the direct opposite and you'll be fine...
 

Mike

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BANKERS AND BORROWING MONEY:

When you DON'T NEED IT you can get all you want.

But when you NEED IT he makes it hard on you . :???:
 

YoungFarmer

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Cowzilla wrote:
"Seriously, a pair is going to cost x amount of dallors to run for one year. When calves are worth 400 a head and cows are selling for 800 a head and it cost 400 to run a cow for one year, there is no profit.

When calves are selling for 600 a head and cows are selling for 1200 a head and it costs 400 to run a pair there would be a profit of 200 per pair."

Good point what if this scenario happens, you purchase a group of 3 time calvers for $1400. Say you get six more calves out of them and the North American cattle market turns down. You ship them as culls and the cull market is down to $500 per animal. $1400 - $500 cull = Capital cost of $900/6 years =$150 per year provided no death losses and added interest costs in higher priced cows. Or is the Capitall depreciation of the Cow already figured in your $400 a year cost anaylisis?

Just food for thought.
Having to turn money down from the banks as well.
 

Aero

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selling cows should not be the agenda when the market is down.
 
A

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BANKERS AND BORROWING MONEY:

When you DON'T NEED IT you can get all you want.

But when you NEED IT he makes it hard on you .

A bankers job is to earn money for the bank, same as the borrowers job is to earn money for themselves. Banks work on cash flow, and equity, etc. on the day the money is lent. It might look to be a bad idea to loan money when cows are 700 dollars, and calves are 400. And it is the borrowers job to look ahead and predict whether or not your loan will work for you. Bankers want a return of course, but will always cover themselves first. It will always be that way.

I have found that when we went in and visited bankers, that the more homework we had done before we went in, the easier they were to get along with. They like to see that you have done your research, instead of just "what will you loan me?".
 

Jinglebob

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the real jake said:
BANKERS AND BORROWING MONEY:

When you DON'T NEED IT you can get all you want.

But when you NEED IT he makes it hard on you .

A bankers job is to earn money for the bank, same as the borrowers job is to earn money for themselves. Banks work on cash flow, and equity, etc. on the day the money is lent. It might look to be a bad idea to loan money when cows are 700 dollars, and calves are 400. And it is the borrowers job to look ahead and predict whether or not your loan will work for you. Bankers want a return of course, but will always cover themselves first. It will always be that way.

I have found that when we went in and visited bankers, that the more homework we had done before we went in, the easier they were to get along with. They like to see that you have done your research, instead of just "what will you loan me?".

Very true Jake.
 

DOC HARRIS

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With the kind of negative thinking expressed here in a time when the market looks very good for the next few years, and the nation's cow herd needs to be increased as a result of cutting back because of low prices and drought the last few years - I am curious why some of you feel that, ".....gee Whiz.... I can't see raisin' beef because there is no money in it. . . .!" :? :???: :( :( :cry: :cry: :oops: :oops: WHY are you in the BUSINESS?. . . .HELLO! :eek: :help: :cry2: :frowns: :dunce: Of course, You have to have a cow herd that has good E - - - - -aw, forget it!

DOC HARRIS
 

YoungFarmer

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I don't mean to be negative Doc Harris, yes cattle markets are good even after being kicked in the teeth up here for two years but like you said the cow herd will increase again. But I Just try to take a unbiased, non emotional view when trying to decide how to spend my money. Perhaps I'm in a little different situation then some producers. To be honest I see myself as a farmer not a rancher. Our farm is somewhat diversified be it grain, beef, or perhaps considering building a hogbarn or just off farm investing. I work a fulltime job and In the long run I want to be sustainable and profitable.
 

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