KC Sheperd, Farm Director, is back talking with Bob Rodenberger, a partner with Stockman Oklahoma Livestock Marketing, as he gives the latest on the cattle markets.
The wheat situation is looking better than some expected, Rodenberger said, but many producers have been on the fence about buying calves because of moisture.
“Now we have got some people that have got wheat, and they are needing calves,” Rodenberger said. “They are just looking at what wheat is worth in May versus what they can buy these calves for.”
Last week’s numbers coming through the sale barn were lighter because of rain, but Rodenberger said this week’s numbers were half as many as this time last year.
“We may be running into the situation now where we do have less cattle,” Rodenberger said. “There are not as many out there to buy from, and that is not going to get any better.”
“I think we sold a lot of cattle in June, July, and August that would have been September and October cattle because they sold them early mainly due to the grass and hay situation,” Rodenberger said. “The calves were bringing 1300 to 1400 dollars per head, and we are normally selling calves for 700 to 900 dollars, so there is still a huge premium built into this market.”
Although expenses are still very high, Rodenberger said the increase in the worth of these cattle is more. Rodenberger also said there is still a substantial amount of heifers going to feedlots.
“I don’t see the cowherd growing,” Rodenberger said.
Looking into the next few months, Rodenberger says at Apache, he does not expect to see numbers anywhere close to November and December of last year.
“I think we will be down anywhere from 25 percent to 50 percent from a year ago,” Rodenberger said.
