Feeder prices

[grassfarmer]

I'm interested to see feeder calves trading 10 cents/lb higher than they were at year end, why? All the experts and economists were warning that higher numbers and high grain prices would see prices fall through the first quarter - what happened? Is it to do with Rule 2 or simply that fats are trading higher currently and that always spurs action from feedlots. Any suggestions?
I'm kicking myself for trying to be a better marketer and following all the predictions before marketing my calves back in December. Should have gone with my gut instinct of not selling when everyone else is, on a down market.

[hayburner]

May have alot to do with the interest free loans up to 100,000 dollars to the feeder associations just received. Someone can correct the $$ amount as that is what the rumor was.

[coppertop]

Whatever the reason, anyone selling now is getting a decent price. Had a call from a friend this morning, he sold 590 pound black limo cross steers today at Strathmore for $1.20, and heifers at 690 brought $1.05.

[Horse]

Heard on the radio today that farmers are so loaded with cash from the high corn prices that investors are out looking for any thing they feel the farmers will buy and going to invest in that product. And that will be hard on livestock producers.

[cattleman2]

The interest-free portion up to $100,000 is to be on home raised inventory similar to the grain producers. Inventory that is bought is not supposed to qualify for the interst free.

[Willowcreek]

Some folks must be seeing green grass appearing and getting some optimism...Prices even rose down here...Yesterday at Glasgow Stockyards some calves were up $20 over last week...Prices higher than they were here last fall...550 black steers bringing close to $1.30 -- some black 660 weight heifers around the $1.10 mark.....

Several buyers really showing some demand....
Definitely smiles on some faces of some ranchers...

Futures took a big jump yesterday for some reason too...

[cswilson]

Futures must be anticipating that flood of high quality Canadian beef to drive consumer demand back up lol. Wonder how R-Calf will spin and win this one lol.

[Cattleman]

cswilson, you mean spin and lose lol

[hayburner]

thanks cattleman I heard of the program as I am not a feeder association member . Might be worth looking as we haven't sols any 06 calves/

[kato]

We're in a feeder association and this is the first I've heard of this.

Is it just in Alberta? I'm not sure how this is really possible knowing the way the associations work here in Manitoba. We put out proposals for tenders to different banks and credit unions when we negotiate the interest rates on our loans. Prime is the best it's ever been, and that hasn't happened for a while.

It's interesting about the feeders too. We got a call from our cattle buyer today from the auction mart. He said he wasn't sure why, but calves were going up. While he was on the phone some 590 pound white steers went through the ring for $1.24.

Fats are up this week too. I'm not sure about other places, but the sales have been smaller in the last two weeks as well.

We'll test the waters on Monday. We've got a few of our own stragglers consigned to a presort. If that goes well, then Call the Trucks! We've got a couple of hundred grassers that want to go for a ride. LOL

Boy, it's refreshing to hear good news for a change.

[cswilson]

Sheesh I got a couple loads of fats going to close in a month or so surely the market will correct downward by then.

[coppertop]

cswilson, I though you were a glass half full kinda guy !!!!!!! Hopefully the prices stay up and you do well on your fats.

[cswilson]

I was being facetious lol. They'll do just fine I'm sure.

[hayburner]

Kato : in reply to your question , I have ask our local feeder association and apparently he thinks it is a federal program so it should be available in Man. You have to apply for a rebate of the interest paid.

[DaneG]

the cash advance for cattle is a federal program,in manitoba it will be administered by the mcpa. up to $400,000 per producer the first $100,000 intrest free secured by your cais margin so very few will be able to even come close to maxing out the program.