Page 35 - Sep302021

MARKET REPORT The Midwest Cattleman · September 30, 2021 · P35
Open Heifer Options

Making Lemonade out of Lemons
Live Cattle Feeder Cattle Daily

By Kevin Laurent, Extension Specialist, University of Kentucky
There are many events was a slow breeder as a year-
or moments throughout the ling, what will her chances be
year that we as beef produc- of breeding back as a 2-year-
ers look forward to with great old? If we choose to cull her,
anticipation, excitement and what is the best way to mar-
frankly some degree of worry. ket a 900-1100 lb open heif-
It could be the daily checks er?
during calving season or Option 1: Sell at the sale
finding out your pay weight barn. Obviously, the easiest
and price for a load of year- option, but be prepared for a
lings you delivered to the pretty severe discount main-
sale barn. I think most of us ly because there are simply
would agree that the annual not that many heifers of that
preg checking of the cow herd weight class at the sale barn Feeder Cattle: All you have to do is look at the corn market for a reason for the
Live Cattle: My thoughts center around this market stabilizing now. I’ve been
is right there towards the top on any given day. Remember, pull-back in feeders. If I owned a feedlot I’d be nervous to say the least. I do feel
placing a bullish tilt to this market for some time now. I may need to temporarily
place this on “hold” for a while. The higher placements the last three months will
of the list of management ac- the cattle market moves in the feeder market has overdone it to the downside and it will be tough to break it
have a negative impact on prices yet, so like they say, “All good things come to those further. The early corn harvest has most feeder buyers in the field and I don’t think
tivities that can have us on load lots of 48-50,000 pounds.
who wait”. I see production numbers staying over last years’ levels until at the they’ve really had time to concentrate on buying feeders. Let’em get caught up a
pins and needles. Open cows It may take order buyers sev-
least the end of the year. Beef shipments have been lagging last years’ levels now little and they’ll head to town.....checkbooks in hand....bulging with “corn” money.
and open heifers are part of eral weeks to assemble 45-50 This market will rally....wait and see.
for about a month. Two weeks ago they were 8% lower than last year. This weeks
the business. What we choose open heifers of that weight
report showed exports a whopping 56% lower than last year. This ain’t good. Low
to do with open females can class to make a load.
imports and high exports have held this market up all summer. We’re starting to
affect our bottom line. For Option 2: Feed them.
lose some of that. I just can’t pull the trigger yet on long term bullish hopes.
the sake of brevity, I would Open replacement heifers
like to limit this discussion are still of an acceptable age
to replacement heifers and to be finished for slaugh- Trading commodity futures involves substantial risk of loss
and my not be suitable for all investors. The recommendations
Rich Nelson
what options we have when ter. Most heifers at preg- express opinions of the author. The information they contain is
Allendale Inc.
obtained from sources believed reliable, but is in no way guaran-
Allendale Inc.
the vet finds her empty. nancy check time are about teed. The author may have positions in the markets mentioned
815-578-6161

rnelson@allendale-inc.com another 18 months of age and can including at times positions contrary to the advice quoted herein.
Give
her
Opinions, market data, and
chance or cull her? It may be easily finished with 3-4 recommendations are subject to change at any time.
What Does this Report Mean to Me?
be tempting to give open months of additional feeding.
heifers another chance espe- Local beef is in big demand
Q #1
cially if you have both a fall and if slaughter space can be
and spring calving season. scheduled this may be an ac-
What do you think the price of fats will be in April 2011
The problem with this option ceptable option.
Answer: It’s hard to see the forest for the trees here, but peering through the foliage I see $105.00 fats on the horizon for April. Demand is
is research shows that there Option 3: Retain owner-
going to have to kick in though in order to get it.
may be upwards of 20% re- ship and send them to the
duction in conception rates feedlot. This is one option
Q #2
on heifers that failed to con- that most small to medi-
Due to the recent break in feeders, would you be holding your fall-weaned
ceive in the first breeding continued on page 39
calves for a while or letting them go?
season. Ask yourself, if she
Answer: What ever happened to the easy questions? This will depend upon your weaning sched-
ule and your available feed supply. I’m long term bullish the feeder market but the “reality” of
right now probably dictates letting them go. If you keep them for an extra 30 days, make sure you
minimize the grain in the ration. Grow them on good forage....”sell” $4.50 corn. If the fat market
stays sluggish and corn prices don’t moderate, about the only thing you’ve got to hang your hat on
for “higher feeders” is “Hope”.
November 6th
Auction
Lunch at 11:00 a.m.
Sale at 12:30
Sale Offering
16 - 2010 Heifer Calves Jan. - May
16 - Breeding Bulls 7 to 18 months RH Standard Lad 0313
16 - Spring Calving Bred Females Solid As A Rock Sire Group
16 - Spring Calving Black Females Reynolds Herefords
Bred to Hereford Bulls
8 - Fall Calving Pairs 1071 County Road 1231
6 - Show Steer Prospects
Both Horned & Polled Offered Huntsville, MO 65259
573-641-5270 November 5, 2010 Sale offerings on Home: 660-277-3679 • Matt: 660-676-3788
Display 3:00 P.M.
CHB Dinner at 6:00 P.M. • Barb: 660-676-4788
Call or E-Mail for Catalog Email: reynoldscattle@cvalley.net