Sort & Cull

It's been disheartening since July 1 to watch the cattle complex trade. Regardless of reason -- whether that be economic pressure, concerns about the upcoming election, the story about cattle in Wyoming dying from anthrax, etc. -- time and time again the market has been quick to duck and run and prices tumble lower.

There have been days of small technical victories here and there, but largely the market has settled into a downward trend for the time being. And believe it or not, there are already signs that the fall feeder cattle run is beginning to get underway: on Monday, Joplin Regional Stockyards in Carthage, Missouri, 14,000 head traded -- which is substantial given that last week they only traded 6,602 head and that a year ago they sold just over 8,000 head.

I understand as a producer myself how challenging it is pinpoint when you're going to market your feeder calves and sympathize with the producers who sometimes just throw their hands in the air and say, "this week is the week, I'm done trying to outthink the market." When your yearly notes are close to being due, the pressure to market your calves and get what you can begins to be a heavier burden to shoulder.

But before you throw your hat and wave your hands in disgust with the market, remember -- you do have options. When it comes to marketing your calves this fall, sort through all your possible marketing scenarios.

The two biggest decisions that cow-calf producers must navigate when selling their calves are location and time.

When it comes to location, think about what best suits your operation in terms of minimizing stress on shipping day, all while capitalizing on the best price scenario. For some people, that may mean marketing at sale barn; for others, that could be utilizing a video sale; there's also always the opportunity to market to a local country buyer. Do your homework: See what prices are doing on the calves that you're looking to market at in each of these outlets.

The harder piece of the equation is choosing the right time. As I mentioned earlier, the cattle complex has been under pressure since the beginning of July and there are numerous hurdles the market needs to confront and overcome.

I personally don't believe that the market is done trading higher, but think this point in time could be a just a blip like the market saw last fall.

I remain optimistic because even though prices are pressured right now, beef demand compared to years past is still strong.

Also, we have limited supplies of feeder cattle this year because the beef cow herd is reduced.

See the Aug. 1 cattle on feed report at https://www.dtnpf.com/…), how the market responded at https://www.dtnpf.com/… and my recent column on the hint of stronger beef demand at https://www.dtnpf.com/….

ShayLe Stewart can be reached at shayle.stewart@dtn.com

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