August 2007 Archives

Record-high retail prices aren't driving consumers away from eating beef, said Randy Blach, executive vice president of Cattle Fax.
"So far so good," he said during Monday's general session. "Demand year to date is up. Demand data we look at is up 2 to 8 percent," he said.
Demand is keeping calf prices strong, though margins are tight for feeder and packer sectors.
"(We've seen a seasonal push in calf prices this spring, then we'll see them soften as we get into the fall fun," Blach said.
Cow-calf operators have two ways of playing the market: If there are feed resources, Blach said you've got the option of putting an additional 200 pounds to 400 pounds on the animal "before bringing them to town, or forward-contracting them as opposed to selling them right dead-middle in the run."

-BLAIR FANNIN

Dr. Jason Sawyer, assistant professor of beef cattle marketing and production with the Texas Agricultural Experiment Station, said Friday's close of corn futures contracts on the Chicago Board of Trade were higher with forecasts of hot weather in the major growing regions.
However, he said corn futures are likely to drop Monday morning after weekend rainfall covered many of those same growing regions.
"Weather is a big reason why corn prices are priced so high (right now)," he said. "There's risk factored in there."

- BLAIR FANNIN

The Nutritional Management session has attendees lending all ears, listening to forecasts on grain prices and the future of ethanol production.
Dr. Ted McCollum, Texas Cooperative Extension beef cattle specialist in Amarillo, kicked off Monday's session with a point to ponder.
"Are (feed prices) really that high?" McCollum said. "Seven or eight years ago, what we're you selling a 500-pound calf for? Eighty to ninety cents a pound? Now at $1.30, are feed costs really that high? The price of feed has gone up, but at same time look at the value of those calves - the price of calves has increased faster than the price of feed."

-BLAIR FANNIN

Check back for updates from the 2007 Texas A&M Beef Cattle Short Course, coordinated by Texas Cooperative Extension, beginning Aug. 6.

-BLAIR FANNIN