Market Report - Week of December 18, 2023

Cattle Market Report:‍

Recently the cattle markets have enjoyed a bit of a rebound. While we clearly haven’t made up the losses from the last several months, my opinion is that we will still see some rally between now and spring. I feel like the decline was equal parts trading manipulation, seasonal decline, and somewhat over-inflated prices to begin with. 

There is a lot of optimism about the rebuild starting this summer. I think we will see retention starting but my anticipation is that the rebuild will take two seasons, maybe more. I get the impression that producers are cautious about rebuilding their herds too soon which is wise. I also want to make another plug for rebuilding in a thoughtful manner. Make sure we build to levels that can be sustained by our landscapes for the long haul. ‍

Grain Market Report:‍

Grains have been trading sideways recently with little change. Corn harvest was strong this year which has kept prices from rising. There has been favorable information from the current administration that it will be supporting those who produce ethanol for “sustainable aviation fuel” which may support stronger prices. Soybeans have been enjoying stronger domestic consumption but rains in Brazil look like they will support a stronger harvest there.  

Cattle and Grain Markets for December 15, 2023

Sheep Market Report:

San Angelo was lower by $10-$15 on a two-day sale. Goldthwaite was steady and Hamilton was off $5. Fredericksburg was lower. The USDA estimated domestic lamb and mutton meat production for the week ending December 9th totaled 2.24 million pounds on a 38,000-head slaughter this week compared to 2.52 million pounds on a 42,000-pound slaughter the week before. Imported lamb and mutton meat for the week ending December 2^nd totaled 6.67 million pounds or 265% of domestic production.

Sheep markets for week ending December 15, 2023

*No Quote ** Not Applicable

‍Hay Market Report:

In general, the hay market is a bit of a mixed bag. High-quality hay is still harder to find, and it seems like some growers who have it are holding out for better prices. The same seems true for lesser-quality hay. Growers are now looking to next year hoping for a little better price. That may be true in some regions, but the long-range forecast for a large part of the southwest and plains regions is calling for better than average moisture which most likely means stronger supplies next year if crops can be harvested around the moisture.  

*Ross Bronson and Redd Summit Advisors are not financial advisors, and this market report is in no way intended to provide financial advice. This commentary is merely meant to be insight and input about current market conditions. It is recommended that any market commentary be compared to your own trusted sources, experience, and market evaluation. Especially those that are more specific to your regional market dynamics.