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Risk management remains crucial for cattle producers

A market specialist for the Missouri Department of Agriculture says several sale barns around the country notched record high prices for cattle last week. Tony Hancock says it should serve as a reminder for producers. “When prices get to record highs, eventually they are going to turn and head the other way,” he says. 

He tells Brownfield it’s a good time to protect profitability, even if it is a little more expensive right now. “Because these prices won’t stay at these records or near records forever,” he says.  “But it sure is nice to be there when they are there like they are right now.  It’s a good time to sell right now.”

Hancock says many producers have been taking advantage of these price levels. “Especially on that heifer side,” he says.  “A lot of guys just not holding back those heifers with these price levels where they are.”

He says if the sale barn trends are accurate, it indicates January’s Cattle Inventory report won’t reflect any wide-spread herd expansion.