Cattle Call is an original production of the Nebraska Rural Radio Association and is brought to you by Wolf Auto – Small Town Strong.

After weeks of steady gains, the streak of higher cash cattle prices has ended. On this week’s episode of Cattle Call, Brad Kooima of Kooima, Kooima & Varilek discussed softer market conditions, shifting psychology, and ongoing risk management challenges.

🐮 Cash Trade Trends and Cattle on Feed Report
Kooima confirmed what many in the market have sensed: “Anybody that’s honest felt the softening of the market as we went through the week.” He said wide trading ranges were seen last week, but “it feels to me like the market has shifted a little bit.”

In his local trade, bids fell from $237 on Thursday to $235 on Friday, compared to $242 the week before. While still historically high, the tone has changed.

“If you haven’t got in on these record prices...you’re going like, well, I don’t want to miss this deal,” he said. “I just worry that we’re in a spell here...where we’re going to see this cash market soften up.”

Kooima also noted last Friday’s Cattle on Feed report, calling it “neutral” on marketings and on-feed numbers, with “a little bit friendly” placement data, down to 92% of last year, largely due to ongoing impacts from the border closure. “This was the seventh consecutive month of record low placements for the state of Texas,” he said, underscoring its significance.

🐮 Managing Risk in a High-Stakes Market
Kooima fielded a listener question about the old-school approach to risk management: selling fat cattle and immediately buying back feeders. While he called the advice “sentimental” and traced it back to his own father’s strategy, he cautioned that it doesn’t always work in today’s environment.

“I can personally show you my scar...seventeen straight months where the cattle that I fed didn’t make any money,” he said, recalling the brutal stretch from May 2015 to December 2016. “Markets change. And if you don’t change with them, even if you’re going the right direction but you’re standing still, you get run over.”

He emphasized the need for broader, disciplined - but flexible - strategies. “I've been a big buy-puts-and-stay-bullish guy,” he said. “You’ve got to do some kind of sensible risk management because of the kind of risk you have up here.”

🐮 Long-Term Confidence and Cow Herd Rebuilding
Another listener asked about rebuilding the cow herd and whether the current market justifies retaining heifers. Kooima responded that confidence will always be limited, but emphasized the importance of sticking to a consistent plan.

“If you normally hold some heifers into the deal, I think that’s what you ought to do,” he said. “We better have a few cowboys left out there. Otherwise, we’re really going to get into a shortage.”

🐮 Cautious Outlook Ahead
Wrapping up the discussion, Kooima said uncertainty from outside influences, like geopolitical events, continues to weigh on market psychology.

“These are monster prices. Cattle are really profitable here,” he said. “Let’s tuck it in here and keep the ball on the ground for a minute and be just a little more careful.”