Behind the Scenes

The big dance in the feedlots

When we think of the Big Dance we normally relate that to NCAA tournament time, The Sweet Sixteen, The Final Four and checking out those brackets. But on Wednesday al I could think of was the Big Dance feedlot operators were doing in the barn yard as cell phones played a happy tune of record high cattle bids.

Who could have imagined on March 30, 2011 live cattle contracts would set new all time highs and feedlot cattle on a dressed basis would trade at $200.00 a hundredweight in the North. And the Southern feedlots were dancing to the live prices of $120.00 to $121.00 and as much as $122.00 to $125.00 in the North.  Prices were $5.00 to $9.00 higher live and the dressed trade was $10.00 to $15.00 more than a week ago.

Optimistic projections for increased worldwide meat demand have a lot to do with the historic highs in cash and futures. Tighter supplies down the road figure into the equation too. But we have to be realistic, what may seem like huge profits to cattlemen are not there due to increased costs for feed and fuel.

I am glad I was here today to report the record breaking market, because it may be a long time before we see prices this high again.

 Jerry Passer

Brownfield Livestock Reporter

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