GrainsWest Fall 2020

Fall 2020 Grains West 24 FEEDLOT VOICES Ryan Kasko Owner, Kasko Cattle Company, Coaldale The four feedyards at the Kasko Cattle Company are running as close to business-as-usual as possible. With COVID-19 restrictions in place and increased safety protocols, not much has changed, or, at least Kasko hopes not much has changed. “On the surface, it’s interesting because feeder prices are quite strong,” he said. “When people are buying cattle back, prices are quite high. Expansions and new construction are planned for this summer. There remains optimism that things will get better.” This comes despite not being able to sell cattle for a few weeks during the height of the pandemic when the packers shut down and, when he did sell, he was losing hundreds of dollars per head. “In the cattle feeding sector, we’ve been really struggling and they’ve been making record profits,” he said of packing plants, asserting their margins are at all-time highs. Kasko immediately enrolled in the set-aside program when it became available. Despite knowing that it wouldn’t be enough to cover all his losses, it certainly helped. He was worried about holding onto animals through summer because big animals may suffer respiratory issues in the heat, they are less efficient on feed and he faces discounts when he sells. These concerns aside, he must also contend with the prospect of a second wave. “Let’s say we have to lock down restaurants again, of course the economy could really struggle,” he said. “People might not be splurging on eating a steak. They might be downgrading their protein choices …we don’t know what’s going to happen. Every time you buy or sell cattle you feel like you’ve made the wrong decision.” “Feeders looking for 10,000 tonnes of barley disrupts the market, but if he calls and books a train direct, it doesn’t disrupt the market,” said Stapleton. “The cattle on feed numbers through July and August, are higher than a normal year or summer, but the demand coming from the feedlots on a monthly or weekly basis does not seem to reflect that. We are not seeing an increase in demand from the feeder.” He said farmers producing feed grains should absolutely be looking to sell old crop. “You’re going to hang onto it and you’re probably going to wind up getting significantly less money for it,” he said. In July, spot pricing on old crop barley hit $245, which is considerably better than the Q4 numbers, showing actual transactions of between $220 and $225 and Q1 2021 has numbers higher at $230. “That’s a $20 to $25 inverse, that’s 50 cents per bushel,” he said. “There’s no reason, zero, to carry old crop grain through to the fall. “The feed market bottomed in the last two weeks of August, hitting $200, but it quickly rose again to $210 and farmers seem comfortable to hang onto grain and not flood the market. Traders don’t believe it, the farmers don’t believe it, the feeders don’t believe it,” he said. “They want it back down at $200, but unless the farmers sell a bunch of grain, it’s not coming. The market didn’t push as low as anticipated.” As the situation continues to unfold in Feedlot Alley, Tranberg repeats the no-bull wisdom of its members: “If you can’t take a little bit of risk, you shouldn’t be in the business. FEATURE The impact pf COVID-19 on feedlot operations is reflected in signage at Grandview Cattle Feeders’ lots.