Holiday Surge: Unlock Holiday Market Opportunities - Salebarn Insights with Karoline Rose Bohannan

As the holidays approach, the cattle market experiences a dynamic shift driven by supply and demand. Thanksgiving and Christmas create unique conditions that affect both cattle producers and buyers. For cattle producers, understanding these market fluctuations is crucial for making informed decisions about their operations during the upcoming months. 

Cull Cows and Bulls: The Holiday Push

One of the key areas impacted by the holidays is the cull cow and cull bull market. These markets operate on the fundamental principle of supply and demand, which can shift in response to the holidays. Cattle processors must maintain a steady flow of animals to meet the demand for beef products, and as the holidays approach, this often leads to an increase in prices for cull cows and bulls.

During the fall, more cows and bulls are being sent to auction than can be immediately processed. This creates a backlog in the system, forcing some animals to be placed on feed for a short period while they wait for a spot in the processing plant. By the time the holidays approach, packers are eager to secure enough cattle to avoid running out of stock, which can be detrimental to their business. This need to maintain a steady supply leads to higher prices for cull cows and bulls during the holiday season, as processors are willing to pay more to ensure they have enough animals on hand to meet demand.

In fact, the increased demand for beef during the holidays—especially around Thanksgiving and Christmas—provides an opportunity for producers to get better prices for cull animals. Since processors prefer to have a surplus of cattle rather than risk running short, they are more inclined to purchase cattle at a higher price. This creates a favorable environment for producers looking to sell cull cows and bulls before or during the holidays.

Feeder Cattle: A Different Holiday Story

On the other hand, the feeder cattle market is often the opposite during the holidays. Many feeders prefer not to have cattle around during the holiday season, as it interferes with their ability to spend time with family and manage their operations effectively. They don’t want to be out doctoring or dealing with new cattle during Christmas and Thanksgiving, which are busy times for everyone.

As a result, feeders often prefer to purchase cattle before the holidays, ensuring they have animals already on feed and in the lot. The last thing they want is to receive new cattle right before the holidays, only to deal with the stress and care of managing them during an already busy time. This desire for a break from handling new cattle leads to a reduction in demand for feeder cattle during the holidays, which can impact pricing and availability.

What Producers Should Know

For cattle producers, it’s important to recognize these seasonal dynamics when making decisions about when to sell. If you are looking to sell cull cows or bulls, the holiday period can be a good time to capitalize on higher prices. The increased demand for beef and the need to stock up for the holidays means processors are willing to pay more for these animals, especially as Christmas and Thanksgiving approach.

However, if you’re working with feeder cattle, it may be wise to avoid sending animals to market right before the holidays. Many feeders will be hesitant to buy new cattle at this time, as they prefer to have their operations settled before the holiday season. Timing your sale to avoid the holiday rush can help ensure that your cattle are placed in the right market conditions, which can improve pricing and reduce the likelihood of delays in processing.

Looking Beyond the Holidays

Once the holidays are over, the market dynamics will shift again. As the new year begins, there will be an increased demand for cattle as packers work to refill their inventory after the holiday rush. This post-holiday demand can create another opportunity for cattle producers to sell their animals at favorable prices.

The cattle market during the holiday season operates on the principles of supply and demand, with some interesting variations depending on the type of cattle. For cull cows and bulls, the holidays present an opportunity for higher prices, while the demand for feeder cattle tends to dip as feeders take a break from handling new animals. Understanding these seasonal trends can help producers make more informed decisions and take advantage of market conditions during this busy time of year.

It all comes down to timing. So what’s your plan this holiday season?