WB wrote:The equity being lost in the feedlot sector currently will be reflected in the future prices of feeder cattle. Bankers are going to be more than a little gun shy going forward. If you are a cattle feeder and have been able to avoid taking a bullet in the last 12-15 months you are in the minority but there will be better days ahead. At least that is what I keep telling myself.
Brad S wrote:"As far as hedging, we have a pretty good source of cheap feed and with the direct marketing, I haven't figured out a good hedge. Had a group look at it for me and they couldn't either."
You have that right - low cost of gain is the best hedge. Makes me wonder why more feeding hasn't moved back to the cornbelt. Obviously excellent climate down in the panhandle, nothing else down there serves feeding cattle. Well, cheap labor.
As for sorting fats, do you ever work with breathour's people? Sure take the guessing out of the stick. For me, after the third critter, they start to all look alike - I used to be an expert running the in and by gate arguing with my dad about his sorts.
If you got out of this winter wreck ok then you must be Houdini. I think we're already seeing calves that will come close to working -been 2 years at least since I've seen that. I've heard many bankers want a confirmed exit strategy before lending money. I had my first "all mine" cattle in the feedlot when the dairy buy out hit in "86" - talk about knowledge bumps. They were steins at home & dad talked me off the ledge. With cheap cog, I gave away some labor - well, traded labor for education.
We'll know it's safe to get back in the water again when there's money in the upgrade cattle.
Faster horses wrote:http://www.northernlivestockvideo.com/catalog/?lot=26067&saleid=983
A video of some customers calves that will sell on Northern Video on Monday. What a set of cows and calves! They do a really good job managing their cowherd. Will be interesting to see what they bring. The guy who bought them last year has expressed interest in them again. These calves are the ultimate in healthy.
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