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User Info It's a 'no-brainer;' sell out herds now in forum [SoftCommodities]
Crossthread
Posts: 4568
Incept: 2007-09-04
Green
Wilmington, NC
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Short term drop in Meat prices?
Higher prices? On the Long Term outlook?

Quote:
With little to no grazing or hay, should livestock producers continue to try to buy feed, move cattle to another state or just sell out?

"It would be much less expensive to just get out and come back later," said Dr. Larry Redmon, Texas AgriLife Extension Service state forage specialist. "And that’s the message that we’re trying to convey."

Many livestock producers have already tried to cut feeding costs by extensively culling their herds, but have held onto enough cows to rebuild their herds if the drought passes, he said.

In some dry years, that might be a good strategy, but not this one, Redmon said.

"It's unprecedented. (We've had) the 12 driest months in Texas history, and there's just not many ways to combat that."

With grazing and hay supplies next to non-existent in many areas of the state, it's getting very expensive to buy feed. On average, it's costing producers "somewhere around a $100 a month to have these animals (cows) stay in the pasture and feed them," he said.

Another choice is to move cattle elsewhere, most likely another state during this drought, and lease land where there is grazing, Redmon said.

"It could be western Mississippi; it could be eastern Louisiana; or it could be maybe Missouri," he said. “I haven’t talked to anybody this year, but in the past couple of years people have called me from other states and they’ve quoted prices of $20 to $22 per (cow/calf) pair per month. Even assuming that’s $25 or $30 that’s still a far, far cry from $100 a month."

read more
http://southwestfarmpress.com/livestock/....



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