Sort & Cull

Last week, fed cash cattle prices ran to all-time highs, feeder cattle prices traded at near-record highs, and both feeder cattle and live cattle contracts traded at new contract highs.

I would be remiss if I didn't highlight the specific accomplishments of last week's market as history was made.

Last week's cash cattle trade was delayed until Friday, and feedlot managers' patient marketing strategy paid dividends as prices were sharply higher. Live cattle in Kansas traded for mostly $213, which is $3 higher than the previous week's weighted average. Live cattle in Texas traded for mostly $212, which is $2 higher than the previous week's weighted average. Northern dressed cattle traded at mostly $342 to $343, which is $5 to $6 higher than the previous week's weighted average. And lo and behold -- these prices once again struck new highs for the fed cash cattle market, taking out the prior highs made just a month ago.

And that's not where the market's upside momentum seized. The futures complex was more than supportive as both markets (live cattle and feeder cattle) reached new contract highs by Friday's close. But, throughout the entire week, April live cattle gained $4.43, June live cattle climbed $4.18, May feeder cattle climbed $3.68 and August feeder cattle jumped $3.43.

So, as cattlemen approach this new week and the months to come, everyone will try to pinpoint the best time to market their feeder cattle for this upcoming year I'd like to remind you of a couple of things.

First, make the most of these times. These prices won't last forever, and we are truly witnessing history unfold before us. The fact that the CME feeder cattle index is anticipated to break $300 is almost unbelievable when you look at what prices were just five years ago. It's fun to think of the new 'toys' you could potentially afford if there's enough money left after paying all the year's bills, but I'd caution everyone against investing too much in fun hobbies as opposed to true assets. It would probably be a good time for us all to look up Robert Kiyosaki's definition of what an asset is as opposed to what we try to rationalize in our heads: "Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets." And I know I don't need to remind you, but I'm going to say it again -- these prices won't last forever.

And finally, but most importantly, don't be naive in thinking you can "outmarket the market." When prices reach historical levels like this, rational thought rarely is the springboard for many of the market's big decisions.

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

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