cull cow prices

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jnm

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Joined
Apr 17, 2007
Messages
86
I have read many columns on how many cows are being culled due to the drought in Texas. I would think this would create a supply/demand problem and push the cull cow prices down. However for the ones I've sold this year, I am getting 50% more than two years ago (I'm in Ohio).
what gives???
 

aandtcattle

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Joined
Nov 18, 2010
Messages
489
Location
Hay Springs, Nebraska
My opinion is this:  The common household in America can readily afford hamburger.  Maybe not readily, but let's face it, if they eat beef, more than likely it's going to be burger before steak or roast.  This alone should help prop up the price of cull cows.  I don't know where all the steak is going???  Export maybe???  I know if I wasnt raising my own, I would not be able to eat steak very often as pricey as it is in the store!
 

twistedhshowstock

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May 2, 2011
Messages
758
Location
Nacogdoches, TX
I think this is a trend that we have been seeing this year that is abnormal to most years when there are heavy culls due to drought.  1) In your area the prices are remaining steady because there is plenty of feed in your area so the markets there are not flooded with culls. 2) One thing I have noticed this year with the drought that I dont typically see is that a lot of the people here are culling for the 2nd or even 3rd time, and are culling before the cattle get in bad shape, at the sale barns around here I have noticed that a large majority of the "cull" cows selling due to culls from the drought are actually in pretty good if not excellent shape, and since so many of the producers are culling for the 2nd or 3rd time and make pretty deep cuts to try and preserve what they have it seems that a lot of the cattle at the sale barn probably still have quiet a few miles left on them, and I have seen that a good number of them are being bought by people in areas that still have plenty of feed and no drought. 
So I have a feeling that while we are seeing a lot of cattle at the sale barn because of the drought, I dont think the "cull" or "kill" cow facilities are getting overwhelmed keeping the prices up on them.
 

aandtcattle

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Joined
Nov 18, 2010
Messages
489
Location
Hay Springs, Nebraska
I beg to differ on this subject.  Gibbon Pack at Gibbon, Ne now has a waiting list to kill cows.  Thats right, you can no longer just show up with a semi load of cows and expect them to just jump out and go to the kill floor.  I dont know how long you have to wait to get a load in now, but there is a waiting list and you have to set up an appointment to get them in.  The majority of the cows being slaughtered there are coming from oklahoma and texas as we are in great shape in nebraska as far as moisture and range conditions.
 

twistedhshowstock

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Joined
May 2, 2011
Messages
758
Location
Nacogdoches, TX
I am not saying there arent some going to kill there are naturally some going to kill...but a lot are going to herds to calve out, so I dont think they are flooding the kill cow market at the sale barn as much as they have in past times of drought!
 

twistedhshowstock

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Joined
May 2, 2011
Messages
758
Location
Nacogdoches, TX
Another thing is what people are buying at the grocery store isnt going to affect the kill cow market that much because the hamburger meat you buy at the grocery store is not likely to come from these kill cow facilities. The hamburger meat you buy at the supermarket is still going to be coming from the feedlots, its going to come from the lower end of the feedlot but still from feedlot.  The meet from kill cows and kill bulls is more likely to end up at fast food restaraunts and facilities such as Campbells that are going to use it in canned soups, canned meats etc.  Generally the meat from kill cows and kill bulls is not high quality enough to be sold in the meat section of your supermarket, even as ground beef.
So like I said, I am not saying that what you said doesnt have something to do with it, and I am not saying that the kill cow market and kill bull market isnt full.  The trich test requirements for bulls at auction barns now are sending a lot more bulls to the killers also.  I am just saying that I think it is staying steady because a lot of the cows being culled down here have a lot of miles left on them and would have never been considered to cull if the producers were not in such a bad drought, and also with this time of year a lot of those cows being culled because of the drought are going to the sale barn bred. So there are people bidding against the order buyers on these cows that will take them somewhere and at least calve them out, if not adding them to their herd longer term. 
So to me that is helping to keep the prices up and keeping the kill cow market from being flooded to the extent that drought in the past has.
 
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