News

Cattle market continues to face unprecedented volatility

A commodity broker says there continues to be a lot of risk in the cattle markets.   Brad Kooima of Kooima Kooima Varilek tells Brownfield, “Forty-five years I’ve done this. It’s never been this bad.”  He says the limits are too big, and it creates volatility. 

The USDA was scheduled to release its latest Cattle on Feed report this week, but with the ongoing partial shutdown of the U.S. government, that’s not going to happen. Kooima says that’s not good for the markets. “I am frustrated with the lack of transparency and some of the news,” he says.  “I’m very frustrated with the U.S.-Mexican border news. I love a bull market. Who doesn’t? That whole matter seems to really lack a lot of transparency in my opinion.”

The October Cattle on Feed report provides quarterly insights, including the percentage of heifers on feed, a key indicator for herd expansion. While the USDA isn’t releasing this report this week, private experts have given their estimates: on-feed numbers are down 2 percent from last year, placements could drop nearly 8.5 percent, and marketings are expected to fall by about 4 percent.

While risk management is a challenge, Kooima says producers should be careful.  “Be a lot careful,” he says.  “Particularly when the feeder cattle cost this much.”

AUDIO: Brad Kooima, Kooima Kooima Verilek