Most things were up in the most recent World Agricultural Supply and Demand Estimates (WASDE) report, released in the afternoon on Oct. 10. For beef, the increased production estimated hinged mostly on increased carcass weights, but corn and soybean yield estimates were finally catching up with what analysts have been saying for months.
Unlike past weeks, trade got underway earlier than usual last week. By Wednesday, over 50,000 head had been confirmed sold with Kansas, Nebraska, and the western Corn Belt leading the charge, despite analysts’ early week projections of late week trade.
Back in the days of the old West, the Pony Express saw fleet-footed horses and their daring riders charging west through hostile territory to get mail through to its destinations. Now the ponies are pointed east and aimed to charge into hostile territory to deliver a petition to the government.
With the recession diminishing in the memories of the country, and people dissatisfied with waiting any longer to invest, the land market in the intermountain region has decidedly picked up. There is optimism and buyer interest with some looking to invest and others looking to expand.
The second week of October looked an awful lot like the first week in terms of the cattle markets. Cash was slow to start with expectations putting it at higher money, futures continued upwards, feeders sold for more money, and the beef complex gained some ground while still leaving packers in the red.
“Prior to the recession, the recreational properties were the focus of the markets. And then when the recession hit, those properties became very stagnant, very difficult to sell. But they have slowly started coming back,” reported Sam Middleton of Chas.
Packers missed the boat last week for buying cattle cheaper. After an explosive rally that began the prior Friday, the relatively aggressive gains of the near-term futures contracts left behind any hope that packers might have allayed their significant losses on the procurement side.