At the risk of being kicked in the shins under the table for saying the uncomfortable truth, but compared to other ag commodities, cattle have held up damned good. It`s a head scratcher how that is the case and the packers must be making money, retailers moving the beef and must feel really generous to pass on a lot of their profit to the cattlemen & women.
I don`t see the elevator and Cargil feeling sorry for me and not taking advantage by paying $3 for my "$8 corn" when they can and look at cash hogs, producers are in the red 90% of the time where cattle producers have been in the green about 10 years straight....I would Looooove to have the cattleman`s "problem" with the rest of my ag production, I think it`s a lot of greed and unnecessary whining with beef and cattle at the prices they have been for a long time. Oh I know if you feed out Holsteins there`ve been times when you`ve gotten hosed.
But if you`re a Simm/Angus quality cow/calf operator, you`ve coined money the last decade and nothing to complain about. These feedlots order buyers and farmer feeders I see them at the salebarn bidding like a Englishman in the noon day Sun, I don`t know how they pencil it out. They must donate their time and "wet corn" to justify their Stetsons....I don`t know.
But, the drought out west has helped manage cattle supply "lowest numbers since the 50`s" is the bi-weekly inventory reports. And I suppose the number of 85yr old ranchers finally getting tired of being mauled by ornery cows and no 30yr olds with the $20 million to buy out their operation also cuts the supply.
But you look at 2012, drought and cows went to town ...hamburger, that explains that year. 2015 was the fruition of low cow numbers and American beef consumption going crazy. The rest of those years of "low prices?" well, I know of some guys that bought broken mouth cows and got "one more calf crop" instead of those cows going to market...you know those stories of bred heifers bringing $3,000? Well bid against a packer for a cull cow for 60 cents and baby her and get one last calf.
Anyway, Just my opinion.
