Source and Age Preimium Expected to Decline

We are finalizing our plans for the 2012 Cattle Feeder Clinic Series which will be held Feb. 13-17 with locations to be announced shortly. One of the topics will include information on alternative markets for feeders, such as age and source; all natural, and grass-fed. Here is some timely information on age and source verified cattle market.

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Feeder cattle marketing is really forage marketing

As I was catching up on my reading, this was an article circulating around in July. As we approach the fall feeder calf markets, I thought this was a timely article and may shed some light on the current cattle market situation.

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

Whether it’s a cow-calf producer selling weaned calves or retaining calves through a stocker or backgrounding program; or a stocker producer adding weight to lightweight calves, the market value of feeder cattle at various weights reflects the value of forage used in the production of feeder cattle.

These economic signals are contained in the level of feeder cattle prices and the price relationships between different weights of feeder cattle. Feeder cattle producers are really in the forage business more than in the cattle business.

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What does seasonality mean this year for cattle markets?

Historically, seasonal cattle price patterns have been one of the most reliable tendencies in cattle markets. This is particularly true in a stable market environment. However, the market is anything but stable now and that means that normal price seasonality may not mean much this year. Anticipating cattle markets is always a daunting task and is particularly challenging this year with so many short and long run factors affecting the market at the current time. Feeder and fed cattle prices have advanced more than seasonally through the first quarter but still there are indications that markets may be close to a seasonal top or plateau. However, there is much turbulence in the water and the picture is far from clear.

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