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FBN’s Jeff Flock on how the Midwest drought of 2012 is impacting cattle auctions and feed prices.
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-- thank you.
Well on cattle producers are facing difficulties eating their herds because -- -- higher corn prices.
And -- being forced to sell them off early that's the cows beef prices are down now but -- possible shortages.
Drive prices back up let's go to Jeff -- he's been covering this story for us from -- Wisconsin Jack.
Glorious that is exactly and we got a real treat for -- because we're live inside any cattle auction this is what they call sealed -- this is where farmers and cattlemen column to sell all of this year particularly because it's very difficult to afford to feed on these guys have already used.
-- that they had sent.
-- use in the fall and in the winter and Mike Burke -- -- -- equity cooperative here.
These guys are forced into market a lot of that's right they they -- a little earlier than what they wanted to because of course the drought in the because -- that.
Take a walk come pouring haven't what we've -- car should say the cost for a feeder cattle these are what they called feeder cattle.
These are our younger cattle that are brought in that are going to be -- in the and then brought to market.
Today at the CME's.
Feeder cattle and I don't know about a dollar and forty yeah if you look at that it -- When this is -- drought started it was about a dollar sixtieth.
So they can see where the prices have gone to listen to this auctioneer for a second by the -- I was just -- little listen now yes.
Up well there you go -- What's playing a 785.
And it will then balloon up to what I don't like how how family you know when it goes.
Have a whole state is used to be around thirteen fifty to 15100.
15100 pounds of twice away they are now -- that's a lot of an eight dollar a bushel is -- it doesn't do much for your profit margin.
No no I understand me there also auctioning -- house.
Because of that -- -- farmers sat down.
Exactly is.
I know -- cautious so much of CDC now some of the dairy farmers and I would reduce my heard they bring in Derek counts.
I'm -- Jeff Flock thank you bring the story great security option activity.
