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farmerjan
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Wanted to add, but hit the post button. For anyone that is at all up on the beef/cattle markets.... there was a huge fire at the Finney Co. processing plant in Ks. It is the Tyson slaughter plant for their select beef label I think. 1200 employees on that shift, evacuated safely. Damage assessments being made but it will be closed for months at least . They process 6,000 head a day, which is no SMALL NUMBER. Now granted, most on here don't buy alot of conventional beef. But this plant processed about 5% of the total beef processed daily, and is about 20% of Tyson's production.
What I am trying to get across is this is going to devastate the "fat cattle ", markets and prices, and it is going to trickle down (actually pour down) to the feeder cattle market. Tyson has promised to pay all it's workers at this plant, 3500 total, their normal 40 hr work week wages and will ask that they help with the cleanup, and that they are going to rebuild. But think of this.... farmers that finish beef for plants for slaughter.... will have all these cattle contracted to go , and now Tyson and other slaughter houses will be trying to absorb all these animals. It wouldn't be so bad except there have been several plants that have closed over the years, and this plant, as are MOST in this country, are operating at 80-90% of capacity..... so it will not be easy to absorb these cattle. It will mean weights will be higher as cattle are moved more slowly.... and the fat cattle prices fell today the max that is set by the "boards" that control all these futures and commodity traders and such.
So, there goes any hope of a fair to decent price for our feeders this fall. It will really hurt the cull cow prices as they just won't be wanting cull cows with the backlog of fat cattle to go to kill. The feeders we sell will be in less demand as farmers that feed them will have cattle moving out more slowly..... Less demand means lower prices.
The only saving grace is that there are more acres of corn that finally got planted since the update in early July. Thoughts were that if it was less than 86 million acres that corn prices would be higher so feeder cattle prices would be lower. If it was in the normal of 88 million acres it wouldn't hurt feeders. It is projected that there is 90 million acres so the corn prices should be lower, if it all gets harvested before frost hurts it. Some is pretty late so may not make a good ear but that remains to be seen.
But with the huge fire, it is making things not look good for us with feeder cattle coming off cows.
I plan to go to our local sale on Friday. Was going to go and check out prices as we were talking about shipping these steers in the next week or 2. Now they might get weaned and put on grass and some grain for awhile, and give the whole system a chance to see how this situation will balance out. Hopefully the guy will still be interested in the heifers.... but at what price?
Going to be a real game changer for the next 6-10 months at least. Many of our cattle in this area go to Penn. feeders, but they will be affected some by this plant too, so it is going to be a widespread ripple in the beef industry.
What I am trying to get across is this is going to devastate the "fat cattle ", markets and prices, and it is going to trickle down (actually pour down) to the feeder cattle market. Tyson has promised to pay all it's workers at this plant, 3500 total, their normal 40 hr work week wages and will ask that they help with the cleanup, and that they are going to rebuild. But think of this.... farmers that finish beef for plants for slaughter.... will have all these cattle contracted to go , and now Tyson and other slaughter houses will be trying to absorb all these animals. It wouldn't be so bad except there have been several plants that have closed over the years, and this plant, as are MOST in this country, are operating at 80-90% of capacity..... so it will not be easy to absorb these cattle. It will mean weights will be higher as cattle are moved more slowly.... and the fat cattle prices fell today the max that is set by the "boards" that control all these futures and commodity traders and such.
So, there goes any hope of a fair to decent price for our feeders this fall. It will really hurt the cull cow prices as they just won't be wanting cull cows with the backlog of fat cattle to go to kill. The feeders we sell will be in less demand as farmers that feed them will have cattle moving out more slowly..... Less demand means lower prices.
The only saving grace is that there are more acres of corn that finally got planted since the update in early July. Thoughts were that if it was less than 86 million acres that corn prices would be higher so feeder cattle prices would be lower. If it was in the normal of 88 million acres it wouldn't hurt feeders. It is projected that there is 90 million acres so the corn prices should be lower, if it all gets harvested before frost hurts it. Some is pretty late so may not make a good ear but that remains to be seen.
But with the huge fire, it is making things not look good for us with feeder cattle coming off cows.
I plan to go to our local sale on Friday. Was going to go and check out prices as we were talking about shipping these steers in the next week or 2. Now they might get weaned and put on grass and some grain for awhile, and give the whole system a chance to see how this situation will balance out. Hopefully the guy will still be interested in the heifers.... but at what price?
Going to be a real game changer for the next 6-10 months at least. Many of our cattle in this area go to Penn. feeders, but they will be affected some by this plant too, so it is going to be a widespread ripple in the beef industry.