Farms.com Home   News

Cattle Market Finds Tipping Point In '15, CattleFax's Randy Blach Says Market Lost Price Discovery

Cattle Market Finds Tipping Point in '15, CattleFax's Randy Blach Says Market Lost Price Discovery
 
After the cattle market flip of 2015, cattle producers are finding a greater need for price discovery. In speaking at the Cattle Industry Convention, CattleFax Chief Executive Officer Randy Blach said there needs to be more points of price discovery on a weekly basis.
 
“When we have one point of price discovery at 4:30 on Friday afternoon where we trade cash cattle, that’s not a very efficient way of doing business, is it?” Blach said.
 
The downturn in the cattle markets were compounded by a large amount of heavy cattle that were backed up in the system in the late summer and early fall. Blach said the market was offering an incentive to packers to ship cattle out of those areas and move them to areas with less inventory. He said when you do that, you end up with a much more limited cash price market in the central and southern Plains and there isn’t any price discovery. At the time, he said 95 percent of the cattle were being sold on a formula or grid and only five percent were selling in the cash market in the central and southern plains and that’s when the industry found its tipping point.
 
Radio Oklahoma Ag Network Farm Director Ron Hays remembers a time when there were 18,000 to 20,000 head selling weekly in the region. Today, the Texas Cattle Feeders are reporting 1,500 - 2,500 head. That change has been quite dramatic. Things also changed in losing the Cargill packing plant in Friona, Texas. Blach said feeders need access to packing plants. An area like Kansas will probably see more price discovery. 
Click here to see more...

Trending Video

Protect Freedom to Operate | Pork Cares Farm Impact Report

Video: Protect Freedom to Operate | Pork Cares Farm Impact Report

Why Should Pork Producers Care? In a world increasingly focused on sustainability, discover how the National Pork Board's Pork Cares Farm Impact Report program aims to build public trust in U.S. pork and safeguard long-term freedom to operation for our farms and businesses.

Join Jill Brokaw, a third-generation pig farmer and staff member at the National Pork Board, as she dives into the critical reasons why the U.S. pork industry needs to engage in global conversations about meat consumption and environmental impacts by staying rooted in our We Care Ethical Principles.

What You'll Learn This video provides information on the Pork Checkoff-funded initiative, the Pork Cares Farm Impact Report. Learn how this program can open the door to financial incentives, technical support and strengthen partnerships with retailers.

Benefits of the Pork Cares Farm Impact Report - Identify Efficiencies and Opportunities: Get a snapshot of your on-farm practices in a concise, clear report.

- Strengthen Your Business & Reputation: Your custom, professional report will enhance your operation’s image with packer and partners for future success.

- Increase ROI: Professional technicians will provide analysis of your data and work with you to identify practices that will help reduce operating costs and drive ROI.

- Proactivity: Demonstrate our industry’s sustainability commitment with verified metrics and prove how we take care of people, pigs and the planet.

Getting Started Ready to take the first step? Get started in 30 seconds. Scan the QR code displayed on the video or visit go.porkcheckoff.org/getreport and complete the form.

Takeaway Your custom, professional report will enhance your pork operation's image with packer and retail partners showing your hard work and your readiness to do more with the right resources.