High Value of Gain ?

Backgrounding & feeding questions.
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High Value of Gain ?

Post by Stocker Steve » Tue Dec 10, 2019 10:25 am

We usually see strong yearling prices in late summer. This year we are seeing this in spades, with almost the same price per pound from 500 to 900 pounds currently, so the value of gain is U$S 1.40 to 1.50 per pound.

Any idea why?


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Re: High Value of Gain ?

Post by Dave » Tue Dec 10, 2019 12:36 pm

I am not seeing that here. The 500 weights are costing well over the price of bigger cattle. I calculated it for my heifers. It is $0.83 a pound. That is going from 450 to 800. At my currant winter feed cost they need to gain 1.28 pounds a day to break even on the over winter cost. My real opportunity for profit comes when they go to grass.

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Re: High Value of Gain ?

Post by Stocker Steve » Tue Dec 10, 2019 1:24 pm

I used to target $1/lb for stocker gain. That meant I bought alot of 3 weights, and got alot of not free education on stockmanship. Wintering 3 wts. was pretty breakeven in an artic vortex, and I had to use alot of bedding.
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Re: High Value of Gain ?

Post by shaz » Tue Dec 10, 2019 1:27 pm

Stocker Steve wrote:
Tue Dec 10, 2019 1:24 pm
I used to target $1/lb for stocker gain. That meant I bought alot of 3 weights, and got alot of not free education on stockmanship. Wintering 3 wts. was pretty breakeven in an artic vortex, and I had to use alot of bedding.
Why would you take the risk with 3wts?
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Re: High Value of Gain ?

Post by Stocker Steve » Tue Dec 10, 2019 2:57 pm

More profit per head, alot more profit per acre.
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Re: High Value of Gain ?

Post by Aaron » Tue Dec 10, 2019 5:56 pm

shaz wrote:
Tue Dec 10, 2019 1:27 pm
Stocker Steve wrote:
Tue Dec 10, 2019 1:24 pm
I used to target $1/lb for stocker gain. That meant I bought alot of 3 weights, and got alot of not free education on stockmanship. Wintering 3 wts. was pretty breakeven in an artic vortex, and I had to use alot of bedding.
Why would you take the risk with 3wts?
If you have a large 3 sided deep shed for them to hunker down in with straw during winter, I would buy as many 3 weights as possible. Alas all I have is the open air and windbreaks, so I get nervous with anything under 400 lbs.
cor durum laborem

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Re: High Value of Gain ?

Post by Aaron » Tue Dec 10, 2019 6:00 pm

Stocker Steve wrote:
Tue Dec 10, 2019 10:25 am
We usually see strong yearling prices in late summer. This year we are seeing this in spades, with almost the same price per pound from 500 to 900 pounds currently, so the value of gain is U$S 1.40 to 1.50 per pound.

Any idea why?
Easier to hedge. Feedlots have been nervous on long-term outlook for the last couple of years. Feeding for 90-120 days is safer bet than feeding 250. Feeders have to be long term forecasters based on futures and too many outside forces can bugger up the best well-laid plans.
cor durum laborem

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Re: High Value of Gain ?

Post by Dave » Tue Dec 10, 2019 6:52 pm

I calculated it using the average prices last week at Vale Oregon for 450 and 850 pound critters. It came out to 83 cents for heifers and 92 cents for steers. I bought a little earlier when prices were down so with today's price on 850's my value gain is 98 cents a pound. Now if the market will stay the same or go up a dime.

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Re: High Value of Gain ?

Post by Stocker Steve » Tue Dec 10, 2019 7:36 pm

Look at the Aberdeen SD sales for comparison. Steer prices go down about 5 cents and heifer prices are level from 500 pounds on up.
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Re: High Value of Gain ?

Post by Stocker Steve » Tue Dec 10, 2019 7:42 pm

Aaron Feedlots have been nervous on long-term outlook for the last couple of years. Feeding for 90-120 days is safer bet than feeding 250. Feeders have to be long term forecasters based on futures and too many outside forces can bugger up the best well-laid plans. [/quote wrote:
Sounds like the feeders can not hedge longer term sales? Because is it just too costly? Otherwise they could buy lighter calves and lock in a price 250 days out.

I don't think my calves are gaining well at -21 this morning. Have to bed them deeper and work on my back grounding skills.
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Re: High Value of Gain ?

Post by JParrott » Thu Dec 12, 2019 2:59 pm

Stocker Steve wrote:
Tue Dec 10, 2019 10:25 am
We usually see strong yearling prices in late summer. This year we are seeing this in spades, with almost the same price per pound from 500 to 900 pounds currently, so the value of gain is U$S 1.40 to 1.50 per pound.

Any idea why?
I noticed the same past couple of months. No idea why. I think those prices are also the top of the market and not the norm.

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Re: High Value of Gain ?

Post by Aaron » Thu Dec 12, 2019 3:20 pm

Stocker Steve wrote:
Tue Dec 10, 2019 7:42 pm
Aaron Feedlots have been nervous on long-term outlook for the last couple of years. Feeding for 90-120 days is safer bet than feeding 250. Feeders have to be long term forecasters based on futures and too many outside forces can bugger up the best well-laid plans. [/quote wrote:
Sounds like the feeders can not hedge longer term sales? Because is it just too costly? Otherwise they could buy lighter calves and lock in a price 250 days out.

I don't think my calves are gaining well at -21 this morning. Have to bed them deeper and work on my back grounding skills.
You're ahead of the pack if you have bedding at all. I had two round straw left and just put them both out, one for replacements and other for fall calves. Going to have to order load from Manitoba at $100/ton. Cold weather settling in this weekend into next week.
cor durum laborem

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Re: High Value of Gain ?

Post by Stocker Steve » Thu Dec 12, 2019 6:17 pm

Bedding costs more than hay?
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Re: High Value of Gain ?

Post by Aaron » Thu Dec 12, 2019 6:34 pm

Most years costs equal to hay here, but only fraction of straw made here this year, so it sells for premium when trucked in from Manitoba. Local feed store ran out in August. Horse people going nuts, desperate to keep Precious well-bedded. I am offering a few select cow people (people who don't be nice me off) opportunity to get in this load at cost. Looks like as of right now, I will have 23 bales left to sell, and the price will be $160/ton, $125 US. Once word gets out with local horse women, it will be gone in short order.
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Re: High Value of Gain ?

Post by Stocker Steve » Fri Dec 13, 2019 4:44 am

I hope your not teasing those desperate horse women.
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