Kurt Kangas
Association Perspective
It's a bull market.
2014 was an incredible year for cattle producers across the United States. Even in areas that faced extreme hardship due to drought or flooding or policy, the prices that these folks received at the sale barn or on video for their product was incredible.
In 2014 we saw the price of feeder calves rise 30%-35% from Jan. 1, 2014, to Dec. 14, 2014, according to CattleFax. Even with the five days of limit-down that occurred at the end of December, it was still a very good year for feeder-calf producers. With that, we saw the average price for slaughter bulls go though the roof.
Different sale barns were reporting good-condition slaughter bulls bringing anywhere from $2,100-$2,750 and some bringing even more. Slaughter cows were right there with the bulls; I watched one slaughter cow pound out for $1,900 and another for $2,100 (granted this was a big cow). Bred commercial replacement females saw an increase of 34% from the previous year in the Northern region and replacement-quality commercial heifer calves saw an increase of 36%.
So, what effect did all this have on the fall bull market? In the Rocky Mountain region of the United States, while the amount of bulls sold stayed relatively the same, the average price of a registered-Angus bull was up 28% from the previous year.
While some areas were confronted with incredible drought, those sales saw some of the best prices they have seen and were able to sell a similar number of bulls as the year before. With the reported declining cow herd numbers, this would seem to indicate that the bull battery out West is probably the youngest it has been in years. Most producers took advantage of the high price of slaughter bulls, sold the old bulls and bought new bulls to replace them this fall.
Springtime and 2015
So, what is going to happen this year? What will my calves, bulls, heifers, cows be worth? This is the question that everyone wants to know. In a recent video sale, feeder calves were trading around $1,600-$1,650 with a weight range of 450-675 pounds (lb.), which are still really good prices. The average price of Angus bulls last year in this region was $5,070; open, ready-to-breed heifers were averaging $1,499.
Will we see the same increase in sale averages that we saw in the fall? Considering that we will sell 63% more bulls in the spring than in the fall, my answer is no. Also, the weather has a huge effect on pricing, especially in the late March and April sales. If it’s a good spring for moisture, the bull sales should hold strong. If there is a threat of drought in the spring-calving region, then prices could stagnate.
Market conditions point to what should be another good year for feeder calves. I wish everyone the best in the upcoming year and good weather for those getting ready to calve.
Editor’s Note: Regional Manager Kurt Kangas covers Region 10, including the states of Alaska, Montana & Wyoming. Click here to find the regional manager for your state.
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