From the Desk of Chip Kemp - Vol. 6

Six weeks of stress. And yet…

That is how some would describe the last month and a half of the cattle markets. By now you know some of the basics of why. Like many, I have strong opinions on some of the happenings. Should you want to visit about those feel free to reach out. I’d be happy to get your take. I can even offer some insight into my own thinking if you wish.

But stress doesn’t always denote a negative. You’ve been stressed and unnerved many times before a very positive outcome. Personally and professionally, most of your positive memorable events were preceded by a little unease. So, let’s recognize that there will be good to come out of these market situations as well.

It is also good to remind ourselves with some perspective. Feeder calves are roughly $60 higher than they were a year ago at this time. Today’s prices were considered historical highs just a handful of months ago. Portions of the beef business are making some adjustments, but the general bullish market still exists just as it did before. Again, as a reminder, take a quick look at feeder calf prices over the last 10 years. Then compare to other commodity types. Other than maybe gold it is hard to find anything that rivals cattle for value increase over the last decade. And our supply/demand curve continues to favor elevated prices. I don’t pretend to be an economist. I’m confident there will be turns in the market you dislike (regardless of your role in the beef business).

https://tradingeconomics.com/commodity/feeder-cattle

My point, we are still in a strong position. Now is the time to continue to invest in your business if you wish to be profitable in the near term and relevant in the long term. As you invest, explore those approaches that generate serious positive change and serious positive energy in your business and in your family.

And lastly, though far more importantly, is “the yet…” Like the farmers and ranchers that came before us – it is imperative that we humbly take the highs and lows with recognition of our larger purpose. And the Christmas season is an ideal time to reset and remind us that we serve an Almighty Sovereign who understands our fears, our hopes, and our joys and asks us to align our will to His through it all. If we have the courage and strength to follow that path, then the only “market projection” of eternal importance is always up.

From all of us at 701x, may you and yours have a most Blessed and Meaningful Christmas Season!