High Value of Gain ?

[Stocker Steve]

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?

 

[Dave]

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.

 

[Stocker Steve]

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.

 

[shaz]

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?

 

[Stocker Steve]

More profit per head, alot more profit per acre.

 

[Aaron]

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.

 

[Aaron]

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.

 

[Dave]

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.

 

[Stocker Steve]

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.

 

[Stocker Steve]

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.

 

[JParrott]

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.

 

[Aaron]

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.

 

[Stocker Steve]

Bedding costs more than hay?

 

[Aaron]

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 piss 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.

 

[Stocker Steve]

I hope your not teasing those desperate horse women.

 

[BrazosBottomHand]

Usually that situation has to do with what month the cattle will be finishing at the feedyards. Most likely the heavier cattle will be finishing In a better month (Feb-April). The smaller cattle will be finishing later in the year when fat cattle prices/futures are lower. This will cause the normal price slide on weight to change sometimes. Usually happens around October where I'm at. :cowboy:

 

[Dave]

My value of gain went up considerably. I got in on a deal with some neighbors contracting yearlings. I only have 24 and the pasture they are all in has 750 acres of irrigated pasture with 400 head out there. Kind of hard to spot mine. But with the contract price the value of gain is $1.26 a pound.