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Keeping a lid on cattle prices

Pencil out cost of gains at $1.00/lb.
Take a 600 lbs calf to 1300=700lbs or $700
Take Dec futures at $1.19* 1300 lbs
=$1547 for a fat steer in December
$1547-$700=$847 for that 600 lbs steer

Don't want to disagree with you, just wanted to show you how I figured it out. On the diesel fuel, just use the tractor less :lol:
 
Cost of gain with corn much lower will not be $1.00 per pound. That is roughly where we are at now.

Diesel has to to with shipping. Cattle are shipped several times in their life from the cowman to the stocker man to the feedlot then to the packing plant.

Just sayin...........
 
I don't disagree with you, it is just that we have all been so skeptical about the cattle market, and with fat cattle where they are, it is not justified right now
 
I think we're going to hear a lot of discussion, especially next fall, about how to put a lid on feeder prices.

But you know what? If the calves aren't there, they aren't there, and if someone wants to feed them, they're going to have to pay to get them. Cow calf operations have been biting the bullet for a long time now, and feeders have been doing well. Now it's time for the feeders to have a turn. Just as the past few years (especially in Canada) have thinned the cow herd, the next few years will thin the feedlots. We background calves, and we're not optimistic about replacing the ones we've got in the yard now. It's going to be scary.
 
This is certainly a quandary for the business. My opinion is like yours: THE IS GOING TO BE A BIG SHORTAGE OF AVAILABLE CALVES AND FEEDERS starting this summer.

BUT, if corn stays this high and diesel this high then there is only so much a feeder will pay for a calf unless his end product (the fat cattle) move up SIGNIFICANTLY in price. They are already operating at around a $50 loss per head GUARANTEED at today's price points.

I have been making about $175 a head on stockers and will think I can this summer IF the feeder price stays up. I am buying 550s and selling 750-800s. I try to limit my risk by selling on video for future delivery but there is always a window there in putting the cattle together and backgrounding them where you could get bit by a market freefall.

This shortage of cows and feeders and calfs is going mean there is a LOT of pasture available. Stocker guys like myself need to make sure and not over pay for grazing because if LandOwner A is too greedy LandOwner B should have pasture available. More supply than demand there!
 
How many people do you think are feeding $7 corn? The majority of the corn crop was sold for a lot less than the recent highs.

This corn mkt. could be down by $3 a bushel for the new crop.
 
nortexsook said:
This shortage of cows and feeders and calfs is going mean there is a LOT of pasture available. Stocker guys like myself need to make sure and not over pay for grazing because if LandOwner A is too greedy LandOwner B should have pasture available. More supply than demand there!
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That statement couldn't be more wrong in this part of the country. As fast as cows are sold off the pasture is plowed up and the fences are all torn out never to see cows again. If you want your phone to ring off the hook just put an ad in the paper with pasture for rent. If you can find pasture around expect to pay at least $40 dollars a pair a month.
 
redrobin said:
Bullhauler said:
If you can find pasture around expect to pay at least $40 dollars a pair a month.
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:lol: I think I can find cheaper grass than that.
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Is $40/month that bad? I'm thinking I could do ok with current feed prices dropping a pair off in a fenced pasture that will give them good feed from spring to weaning, then having a $700+ calf to sell before dumping the cow out on corn stalks for the winter. But what do I know, I'm surrounded by corn fields in MO and ground we thought wasn't even tillable is becoming tillable and we are looking at drylotting cows all summer on ddgs and roughage with a creep pasture. It is a viscous cycle as federal subsidized crop insurance guarantees us a profit on about any ground so we can grow corn to make federally subsidized ethanol that is used in cars designed by federal mandates to burn the stuff. Who were the geniuses that came up with pouring billions of taxpayer money towards converting the core of our food supply into energy so we can fuel up all those SUV's cruising around on the city blacktop. :roll: :roll: :roll:
 
I know thats high but for the conveinance and close proximity to a fair market(notice gcreek ididn't say great market)25 miles away.with regular sales.and proven calving ease heifer bulls or red simmies available i think it would be worth the cost to some of the week end cow boys who dabble in cattle .as a added bonus my corrals are in good condition and they would not have to be fixed up before using.and i supply the salt.
 
$40/month of a totally deductible expense might be a better deal than what people are paying to own grass. I think grass should be priced per cwt of stock that is put out on it. A 1600 lb cow and her calf probably eat more than a twelve weightt pair.
 

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