Selling cattle on the grid

[ANGUS327]

There are a number of you that sell cattle on the grid. How are they sold?
Do you just show up at the packing plant and hope they will take them or do you have to make prior arrangements? Do you make any more money selling on the grid? I'm getting tired of watching other people make money off of my cattle and was thinking of finishing my yearling steers and finding a new market. Thank you for your responses.

 

[Mike]

There are a number of you that sell cattle on the grid. How are they sold?
Do you just show up at the packing plant and hope they will take them or do you have to make prior arrangements? Do you make any more money selling on the grid? I'm getting tired of watching other people make money off of my cattle and was thinking of finishing my yearling steers and finding a new market. Thank you for your responses.

There are several different grid prices from different packers. Contact a packer(s) for information on how they pay.

Some are more lucrative than others because of their market.

You could make more money, but it depends on how that particular grid works and how well your cattle fit that market.

Or you could find a feedlot that has access to a grid paying packer and let him handle your cattle.

One thing about it. Selling on the grid will give you info on your cattle that you never had before. Sometimes it good, sometimes it's not.

 

[Turkey Track Bar]

There are a number of you that sell cattle on the grid. How are they sold?
Do you just show up at the packing plant and hope they will take them or do you have to make prior arrangements? Do you make any more money selling on the grid? I'm getting tired of watching other people make money off of my cattle and was thinking of finishing my yearling steers and finding a new market. Thank you for your responses.

Angus...

We have fed our cattle out and they have been marketed on a grid. We had them in a custom feeding situation, so the feedlot made the marketing/delivery arrangements. I believe a buyer still comes out and sets up a delivery date and point, but am not 100% sure.

The key to selling cattle on grids is limiting your discounts (yield grade 4 and 5, selects (in most programs) and lower) and weight discounts. ) If you can minimize discounts, and have "above average cattle" you'll probably do ok, on the marketing side of the equation.

Here are two links on grid marketing fact sheets from Oklahoma State University. The first is to "Fed Cattle Pricing: Grid Pricing Basics:"

http://pods.dasnr.okstate.edu/docushare/dsweb/Get/Document-1989/AGEC-557web.pdf

This link is to OK State's Beef cattle fact sheet website. There are lots of grid marketing pieces available here, including the one above. I'd encourage you to do your homework and look through them, so you have a better knowledge of the risks, gains, etc.

http://pods.dasnr.okstate.edu/docushare/dsweb/Get/Document-1989/AGEC-557web.pdf

Maybe another good tool for you would the USDA's daily reports. I like these two, and check them out almost daily!

USDA Beef Carcass Price Equivant Index Value (this has the average prices paid of all grids in the US over the past week as well carcass weight, choice-select spread, etc.)
http://www.ams.usda.gov/mnreports/nw_ls410.txt

USDA National Daily Cattle and Beef Summary (this has carcass weights, prices, futures, etc.)
http://www.ams.usda.gov/mnreports/lsddcbs.pdf

In my mind, the other important question to ask, is do you know how your cattle have performed in the feedyard and on the rail, previously? If you do, you should have a better idea of what to except. If not, you could be on a big rollercoaster ride of risk.

If you do have previous performance data, I'd put a pencil to it pretty hard. I don't know where you plan on feeding, but it sure looks like feed prices/costs of gain here in the US are going to be very high for at least the next year. Cattle that are generally the most profitable (irregardless of feed costs,) are those that gain efficiently and gain well (sure not one in the same,) stay healthy, and can perform to the grid standards on the rail.

Good luck...

Cheers---

TTB :wink:

 

[efb]

I'm getting tired of watching other people make money off of my cattle and was thinking of finishing my yearling steers and finding a new market. Thank you for your responses.

The more money people make off my cattle the better I like it Keeps them coming back and make them worth more.

 

[ANGUS327]

I'm getting tired of watching other people make money off of my cattle and was thinking of finishing my yearling steers and finding a new market. Thank you for your responses.

The more money people make off my cattle the better I like it Keeps them coming back and make them worth more.

good point,

 

[Northern Rancher]

The feedyard I use does all the grid negotiating for me-gonna be an interesting fall placing yearlings on feed-I don't consider my cattle especially fancy but they seem to hit the grid well. You'd be amazed at the difference you'll see in your cattle and the stuff you will learn-I've got an old Longhorn/Hereford cow that has probably generated over a $1,000 in grid PREMIUMS over the years- Y1 Primes pay pretty well.