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Over My Shoulder

published: October 17th 2008
by: J.D. Sartwelle, Jr.

September was mostly about Hurricane Ike if you lived in the southern half of Texas.  Throughout the month there were other happenings that had to do with other hurricanes, failures of financial markets, mortgage markets, governmental bailouts, presidential politics as well as the everyday, ongoing livestock marketing picture.
    Ike came in at the middle of the month, tore up Galveston and surrounding area and created much havoc to the agriculture scene, most particularly in the area south of Interstate 10 from Trinity Bay to Beaumont-Port Arthur into Cameron Parrish in Southwest Louisiana.  Most of the area is strictly cow country with some cropland.  Those close to the water were able to drive cattle to higher ground but couldn’t go far enough as surge water pushed further inland than anybody’s memory who is alive today.  Those that were farther inland still experienced heavy wind damage, loss of infrastructure, and were and are to be without power for a long time.
    Those in the agriculture community began to respond to devastated cowmen’s needs beginning the day after the storm by hauling water troughs to designated “gathering areas” delivering and pumping fresh water, and receiving donated feed and hay by generous folks from everywhere.  The Texas and Southwestern Cattle Raisers Association sent their officers and Special Rangers in mass to help identify cattle, while the Texas Department of Agriculture mobilized trucks to transport donated feed with help and oversite by Texas Agrilife Extension Service personnel.  Other local groups like ICA, volunteer fire departments hauling fresh water, truckers hauling cattle out, area livestock markets receiving cattle and a myriad of cattle people helping cattle people characterized and punctuated the efforts to properly care for gathered livestock.  Dozens of ranchers from South Texas to East Texas offered to provide pasture and care for livestock out of the area. 
    While the “after storm” consumed most of our attention till the end of the month, life and the industry did go on.  Moisture effects from the storm put more water down outside of the state rather than in the state but still left useful moisture along with moisture from the first of month storm.  The clean side of Ike did not put down as much water as many in the very dry areas really wanted or needed. 
    On the national scene, other than presidential politics, USDA and the industry were trying to put final touches on the COOL regulations that will go into effect on September 30th, while a House Judiciary subcommittee was discussing the fate of hauling horses for slaughter under a fancy name that didn’t really indicate what it was, and the congress began to sort out an economic bailout out package that is supposed to keep our economy from drowning.  By the end of the month, they hadn’t come to an agreement.
    Meanwhile in the feedyards, fed cattle hovered below a dollar in the $98-$99 area and traded sideways most of the month.  Fed cattle certainly need to be higher as far as a feeder is concerned but it was simply not there to get, perhaps it will break loose to rise to meet October futures that remain over the dollar.
    Close to home, early month moisture grew good grass and the cool nights, warm days and low humidity allowed cowboys to make the best hay of the year.  At the markets, September saw a few more cattle on a seasonal basis and by month’s end with numbers and health concerns, the calf trade took about a $10.00-$15.00 hickey.  Cool nights and warm days causing health concerns and a faltering economy will likely keep the calf trade on the defensive for a while.  With a build up in numbers of slaughter cows standing at the packing plants, slaughter cows and bulls took off $7.00-$9.00 at month’s end.
    The industry has a good bit of negative things on the plate, but there is also some very positive things.  The smaller calf crop, fewer numbers in the feedyards, and increased export demand can make positive differences.  With crude oil on the way down, perhaps fuel will follow and help things out.  At first of the month, we still have a good many calves left to sell and favorable weather in many areas and no storms on the horizon. 
    Come on October.
SLS