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201 Innsdale Terrace, Clovis, New Mexico
505-769-3300(November 24, 1999) FEEDER CATTLE: Guess you could almost say that feeder cattle have led the way up on this last trip. There's no arguing the fact that they are in demand when there are buyers above new contract highs on a daily basis? The break-even figures don't seem to be getting any closer to working when figuring against that animal coming out of the feedlot. This sort of reminds us of the last few years when everyone's attitude about feeding cattle was to just pay anything for a feeder because with cheap grain it was a "sure thing" that everyone will make money. We really do hope that this is the way it will work out, but realistically, everyone needs to keep in mind that there are lots of opportunities out there, but shop around and put a pencil to your investment before you just take the jump! Odds favor a prices adjustment somewhere down the line? When the market was in the biggest bull market in history (1978-1980), prices still had sharp corrections along the way. Hedgers hold positions and look for other deals which will fit your operation!
SHORT-TERM TREND--(Toppy?)
LONG-TERM TREND--(Also very toppy?)
Bryon Fillpot