La Junta Livestock Commission
La Junta, Colorado
Everybody is asking what to do, what the crystal ball says, The last few weeks there has not been but very little positive news coming for our cattle industry. In a nutshell the futures have dropped like a rock, the same as the stock market. Everybody in politics and media has been in a panic mode. I understand what they are saying that with our medical system as is, it cannot handle an enormous amount of this illness at one time.
Now for the positive news. The retail stores cannot keep up with meat production at the current rate. The news I am getting is that retailers are needing 6 to 8 times more meat products than normal. With that being said supply and demand makes the market higher with a trickle down effect for the producer. A few examples that I have heard, without giving any particular names of companies or stores, that one meat retailer sells for a national independent coop of grocery stores usually sells 4 to 6 loads of meat a week has ask for 28 loads to supply their grocery stores this week. This means that supply is not keeping up with demand. The retailer and the packing house is making huge profits, but the trickle down effect will go to feedlots and producers eventually. Boxed beef was up $16.00 Monday afternoon. That is $2.24 per pound. Fat cattle Monday asking price was $105.00, sold at $110.00 to $112.00. Futures today as I write this, was up $4.50 on live cattle, $6.68 on feeder cattle.
Good news on the nutritional value of beef, with Doctors and media saying that the zinc in red meat will help fight the COVID-19 virus.
March 25, 2020 will be La Junta Livestock’s 65th anniversary. For 65 years we have ask our customers to help us celebrate our anniversary auction. With these unique situations, the sale will be a normal sale, minus any of the celebrations, no coffee and donuts, no trip to Vegas, no Hospice Auction to minimize human contact for the normal buy and sell.
We expect 3,000 to 5,000, cattle, market pending. I am telling all consignors to please consign your cattle Thursday, March 19th so that we can tell buyers what we anticipate. If you consigned your cattle, and you decide to keep them for whatever reason, down market, etc, etc, , even though you have consigned them, I am good with that because I am working for you. Whatever makes you the most money to keep everyone in the business is good for La Junta Livestock and you.
Things are looking up, keep positive, you are who feeds the world. Thanks for your understanding and cooperation.