Call the Market

PHEW! Did you see that one coming? Did you anticipate the $13.17 rally in the spot June live cattle contract or the $20.30 rally in the spot May feeder cattle contract over the last two weeks? It's OK if you didn't; but this rally does demand some attention and should motivate all of us to fine-tune our marketing tactics for the year ahead.

For those of you who are fall calvers and were able to capitalize on selling your calves over the last two weeks -- bravo my friends! Way to be ready to strike while the iron is hot! But for most of the industry, marketing calves over the course of the last two weeks wasn't a true option as most spring-born calves are too young to be weaned and sold, and countryside contracts aren't being offered just yet.

Even though most cow-calf producers weren't able to sell while the market was rallying in recent trading days, the market's upward surge should have all of us refining our marketing strategy for the year. Which brings the following points up for discussion.

1 -- Part of being ready to market strategically means knowing what the market is doing at any given point in time. A dear mentor of mine once said, "Markets work best when participants are active and informed." So, I ask you: Are you informed to the best of your ability on the factors that are going to affect how you market your calves this year? And are you actively seeking market intel so you can be ready to make that informed decision when the time comes?

I know your days are long and the chaos of spring is especially stressful. But most of us have our cellphones within arm's reach at all times and if we make it a habit to see where prices closed at least a couple times a week, you'll be far less likely to be caught off guard by any major move.

2 -- It's imperative we recognize that, while seasonal trends are a reliable sounding board in the cattle complex, the market could experience some abnormalities this year as the cycle could be nearing its peak.

3 -- It's vital we set target price ranges to help ease the decision-making burden. It's human nature -- but a poor marketing strategy -- to simply hope to get lucky enough to sell when the market reaches its peak for the year. That's why setting target price ranges helps ease that burden, as it takes some of the guesswork out of marketing. When prices reach that threshold, you're then posed with the question: Do I want to liquidate here and capitalize on said price? Or do I want to absorb some more risk and delay in hopes of reaching a stronger price?

I hope each one of you has wild success when it comes to marketing your calves this year. The market has been incredibly strong thus far through 2026, and I pray you reap a fruitful harvest. But part of being able to do so means knowing what the market is doing, what your operation needs in terms of price, and being ready to strike while the iron is hot. Do the due diligence necessary so that you can be successful in marketing this year, friends.

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

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