Wild swings in auction prices… and how to secure value

“What are bred cattle bringing?”  this is a question coming from cattle farmers and ranchers all day long from across the country, and there is honestly a huge range of prices coming out of auction barns thus it can be a daunting task determining fair value for quality replacements.
Insufficient live auction demand is a driving force behind price discrepancies in today's market.  It’s no secret that the first few sets of cattle through the ring at any given sale typically represent the highest prices for the sale, however it becomes painfully clear when there are only a handful of buyers in the seats that selling the remaining cattle will be a significant challenge.
There are two main causes feeding this problem and neither have to do with overall demand for bred cattle it simply has to do with scheduling conflicts. Overall there are two demographics that represent potential buyers for bred cattle, the full time farmer/rancher and the hobby farmer with a job in town.
With the size and scope of farming/ranching operations it is increasingly difficult to take the time to devote even one day to sit in an auction with only the mere possibility of purchasing cattle.  Similarly the family with 80 head of cows and might need a set of heifers but it is not plausible to take a full day off of work to watch a sale. 
Thus the stands at livestock auctions sit increasingly empty. This problem is not going away and those producers specifically trying to market bred animals need to be proactive to protect themselves against selling at fire-sale prices.  These are my top three suggestions when working with customers who have bred cattle for sale.

1. Be in communication with your auctioneer and lobby for a spot at the beginning of the auction, if you have to wait until a later sale date to accomplish this feat, do so.
2. Create for yourself a no sale price and set it firmly with your auctioneer.  I encourage people to use common sense when pricing their cattle. Don’t cut yourself short but don’t be greedy either.
3. Consider marketing your cattle privately,  this is the 21st century and it is now more possible then ever to leverage technology to connect producers from across the country, why limit yourself to across your county?

               These steps work towards a semblance of stable prices that create a mutually beneficial scenario for both the seller and the buyer which is the ideal way to create a sustainable system within cattle marketing.  I like to say that a good marketing plan isn’t always trying to top the market it’s not ever getting kicked in the teeth!
Thank you kindly,
Glade Smith, 308-660-9168
Sales and Marketing Manager, Wright Livestock
Founder, Family Farm Beef Box