OVER MY SHOULDER
September most normal month in year of strange weather
J.D. SARTWELLE

September might have been a little more typical weather wise than any month this year while our markets reacted a little earlier and a little differently than they usually do. Happenings around the world have received our attention as we saw animal health problems continue in England, political problems within the ag communities and leadership in Japan and Russia, weather and crop problems in Australia and a continuing world wide demand for more energy from biofuels. September seemed to bring a lot of it to the top and put it in front of us.

Weather here at home moderated and saw fewer rainy periods that allowed the farms boys to finally catch up and harvest the last of the low quality grains still left in the fields, while the cotton boys finally started gathering some of their not so good crop while the cowboys worked a few more cattle than the past three months and at the same time caught up on lots of hay making. By the end of the month most folks were wanting a little moisture to plow on, plant a little ryegrass, or other green grazing or just to settle the dust a bit.

On the political front, much was said by a few of the splinter groups when the USDA announced resumption of Canadian trade of over 30 month old cattle and beef sometime in November. Why is it important? Some of the experts say if "we show our commitment to trade based on sound science that we strengthen our own position as we negotiate with other nations to reopen their borders to the best quality beef in the world."

In the feedyards, for the third month in a row, placements were down, marketings slightly up, and total numbers on feed obviously fewer. Ready numbers have begun to tighten and will get even tighter. Close in and the far out futures were very supportive to a strong market throughout the month even as packers were concerned with tight margins.

By end of month, some packers were cutting hours and days in their processing and fab plants to keep cost down. The next few months will need to see higher fed prices as previously higher priced feeder cattle and higher costs of gains will see some pretty hefty breakevens.

Feedyard prices that began the month around the $93 dollar mark, saw an increase before falling back and then ending the month on a strong mark well over $90.

In the county and at the markets, September weather was conductive to working cattle without being rained on for the first time since May. Cowboys caught up with most of their marketing and in some cases brought some big ole calves to down. The month began with the usual downward pressures on calf prices because of health concerns and a few more numbers but soon turned almost deadly.

As the month progressed it became apparent that the fall and winter wheat grazing boys intended to manage their wheat strictly for a grain crop due to rising wheat prices and the hammer lowered on little calf prices.

Limited available grazing for a little one put the light calf trade into limbo and the average lighter weight (under 450 pound) calf lost 15-20 percent of his value; a hefty blow. It has been this writers experience that when all calves are crammed down the same price hole, that folks simply haven't sorted things out yet. I'll bet in a few days, we have it sorted out and a little one will sell for a wider hundred-weight margin than seen at month's end.

By the end of the month, the better 5 to 7 weight steers traded from a dollar to a dollar 10 to 12 while most of the lighter weights traded in a narrow range just a little higher. The light weight calves that traded above the $125-$135 mark seem to evaporate as the month wore on. Throughout the month, the lower quality, plainer, thinly muscled, inferior calves did not find as good a homes as they have the past few months.

Slaughter cows and bulls hit an early fall snag as they became the victims of a few more numbers all over the country. From first of month to last, the good cutter and utility cows lost $4-$5 live and even saw a few more ultra fat cows as folks cleaned them up for the fall and winter months.

The pork complex was still looking at over a two million head kill but seeing good domestic movement and an interesting and expanding export trade.

The fall months are here, we seem to be drying out and will need moisture to keep things fresh and to grow some fall grazing. Let's hope that we straighten up the calve market at least a little before we finished up this year's calf crop.