Replacement Price Trends

Fall sales through Missouri's nationally-recognized Show-Me-Select program, showed there's some variability in what producers are willing to pay for quality bred heifers right now.

The bred heifers in these sales come from producers enrolled in the University of Missouri Extension's development program. Buyers get not only quality replacements, but background and genetics on every animal. Looking back, price data from these annual sales are a valuable tool to help gauge pricing on quality replacement heifers.

The 2019 sales season wrapped up with six Show-Me-Select auctions across Missouri. The first, held November 15, 2019, at Joplin Regional Stockyards in Carthage, Missouri, saw 190 heifers for sale. Average price per head came in at $1,672; average price on an AI replacement was $1,704. Compare this to 2018, when there were significantly more cattle offered (311) and prices averaged $1,586 across all head; and $1,631 on AI.

Jared Decker, beef geneticist with the University of Missouri, reported sale prices in Joplin were stronger than consignors expected. He noted more out-of-state buyers, as well as a shifting in consignments. There were more red cattle offered, and the crossbreds did well at the sale. Decker noted a trend favoring AI-bred heifers.

At the Kirksville Livestock sale, November 22, 2019, the positive trend stayed in place. Average price was $1,811 per head ($1,717 in 2018); and $1,807 per head AI ($1,728).

The trend turned down for the next three sales of the season, which included Kingsville Livestock Auction, SEMO Livestock Sales and Farmington Regional Stockyards. At Kingsville, the November 30, 2019, sale brought in 231 heifers, with an average price of $1,768 ($1,832 in 2018). SEMO's sale at Fruitland, December 7, 2019, saw an average price of $1,651 ($2,099 in 2018). And the sale at Farmington Regional Stockyards December 13, 2019, saw average prices of $1,694 ($2,334 in 2018).

Discussing the SEMO sale, Erin Larimore, University of Missouri Extension livestock specialist, said she felt the lower prices reflected the general farm economy, where cash is tight.

It was also noted the sale brought more watchers than bidders, and fewer out-of-state buyers were at present. In the past, those producers from across the state lines really helped boost sale numbers.

The last sale of the year, held at F&T Livestock Market in Palmyra, December 14, 2019, ended the season on a strong note. There were 229 heifers offered for sale, and average head price was $2,017 ($1,880 in 2018). Average AI head price was $2,037 ($1,937 in 2018).

For more information on the criteria producers who sell through Show-Me-Select are required to meet, go to https://extension2.missouri.edu/…

(VM/AG)

Copyright 2020 DTN/The Progressive Farmer. All rights reserved.