As we settle into fall, the changing weather isn’t the only transformation at play in the cattle industry. The annual Fall Run—a critical time when calves flood sales and grow yards reach full capacity—is more than just a seasonal event this year. Economic pressures, fluctuating markets, and even geopolitical tensions add layers of complexity.
One notable impact has been the wave of calves hitting the sales barns. With grow yards already near full capacity, there’s less room for flexibility, making it crucial to assess feeding and finishing strategies carefully. Many operators had hoped for a promising wheat pasture season, but the initial prospects were disappointing. Drought and late-season conditions meant wheat pasture options were slim until just last week, leaving producers scrambling to make alternative arrangements.
Corn prices, however, have offered a bit of relief. While corn represents a substantial feeding cost, this season’s prices are relatively low, giving producers a chance to manage feed costs more efficiently. However, this respite is balanced by the swings in market prices, making risk management essential. The temperature extremes are also impacting cattle health. Drastic changes from warm days to cold nights can stress cattle, affecting both young newly arrived cattle and longer term cattle alike.
Beyond local factors, global market dynamics are in flux. The current geopolitical tensions are trickling down into agricultural markets, and an economy teetering between inflation and recession creates additional volatility. We have seen interest rates start to moderate and come down some. This helps all producers manage a portion of their costs. Every producer now faces the need to mitigate risks associated with unpredictable prices and uncertain demand. Long-term strategies that blend risk management with flexibility to adapt to unforeseen events are essential.
All these factors highlight the need for careful planning and responsive decision-making. Producers who manage to stay agile, capitalize on the cost advantage of feed, and adjust for weather and pasture variances will be better positioned in the coming months. As the Fall Run continues, it’s clear that staying informed and adaptable is more critical than ever.
~Tom Fanning
