Change of plans.  I was going to post "part deux" of my tirade against the "beef demand" obsession, but I just saw somwthing that stopped me dead in my tracks.  We can talk about the fallacy of macro economics any old time.  This can't wait.

518# steers traded at $140.00 at Ogallala, NE yesterday.  I'm dead serious.  We have two angles of attack here.  First, stocker and cow-calf guys.  If you have 5-weights in inventory right now SELL THEM.  If you so much as draw in a breath to give me some excuse as to why you shouldn't do that, so help me I'll pull this car over and . . . .  If a guy sells 518# steers at $140 and has a $1.00 cost of gain, he can pay up to $169 for 300# steers, $151 for 400# steers, etc.  CLEARLY you would be in the driver's seat. 

On the feedlot side, if you so much as draw in a breath to give me some excuse as to why those 5-weights are a good buy to go on feed, so help me I'll come in there and really give you kids something to cry about . . . .  DUDE.  You sold $85 fats this week.  If your cost of gain is running $0.80, buying the 5-weights at $140 would be a loss of over $240 per head.  You could buy eight-weight heifers at the same sale for the SAME DOLLARS per head.  You could by 5-weight heifers at the same sale for $150 per head LESS than the steers.  

Sell that which is overvalued.  Buy that which is undervalued.  If we would just do that, everything would be sooo much easier.

I won't have a post tomorrow night as I am going out of town for the weekend.  Be sure to cruise over to www.Barnhardt.biz for Jukebox Friday.  This week's tune will be "Gonna Find Me A Bluebird" by Marvin Rainwater.  Straight out of the 1950's - perhaps the best decade in terms of popular music.  It's certainly my favorite!

Forecasters are killing the North American Cattle Industry.
"Global warming" is a complete fraud designed to advance the cause of socialism and enslave humanity.
Abortion is the murder of an innocent human being and is never justified under any circumstance whatsoever.
Every human being is a question, to which the ONLY answer is Jesus Christ.   

Ann Barnhardt
Barnhardt Capital Management, Inc.
www.Barnhardt.biz
888-799-4577
Ann@Barnhardt.biz

Bud Williams Marketing, Inc.
www.BudWilliamsMarketing.com
877-799-4577
Ann@BudWilliamsMarketing.com