cross_7
Well-known member
Today 5-6 wt steer calves are bringing a 2.00
You reckon there is money to made with buying them that high ?
You reckon there is money to made with buying them that high ?
5-6 wt stocker calves
- Thread starter cross_7
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bigbull338
Well-known member
cross the q is do you see any money in them.because youll put 300 to 400lbs on them.an then sell them for maybe $1.60 tops.an thats $1400 vs $1000 to $1200 to buy them.so where is the profit in those calves.
ga.prime
Well-known member
I reckon whoever paid $2.00 thought there was profit to be made. Hopefully somebody that paid the $2.00 will come on and explain how that works.
cross_7
Well-known member
This wasnt just a few head but a big draft and several more today
Also saw some 475 @ 2.25
Even if your operating out of your pocket(take deep pockets) and not paying interest and the gain was cheap(I know of none) the med's, death loss, day to day upkeep, transportation, and misc expense. I can't see enough profit to make it worth the trouble
But I ain't the sharpest pencil in the box either
Edit
I guess as TB would say, volume son think volume !
Also saw some 475 @ 2.25
Even if your operating out of your pocket(take deep pockets) and not paying interest and the gain was cheap(I know of none) the med's, death loss, day to day upkeep, transportation, and misc expense. I can't see enough profit to make it worth the trouble
But I ain't the sharpest pencil in the box either
Edit
I guess as TB would say, volume son think volume !
cross_7
Well-known member
550# x 2.00 = 1100.00
800# x 1.65 = 1320.00
220.00 gross profit
Med's and trans 50.00
death loss 22.00
Cog = unknown but go cheap-1.00 a day for 150 days = 150.00
Misc expense(fuel, wear and tear, salt, mineral, general upkeep) 50.00
Sales commission- 20.00
total 242.00
Loss of 22.00 per head
800# x 1.65 = 1320.00
220.00 gross profit
Med's and trans 50.00
death loss 22.00
Cog = unknown but go cheap-1.00 a day for 150 days = 150.00
Misc expense(fuel, wear and tear, salt, mineral, general upkeep) 50.00
Sales commission- 20.00
total 242.00
Loss of 22.00 per head
cross_7
Well-known member
3waycross":3qysms0s said:
You're he ll on them corriente's :mrgreen:
TexasBred
Well-known member
Some dumb ass probably thought they were longhorns. :mrgreen: :cowboy:3waycross":331lbkzt said:
piedmontese
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All I can figure is there counting on prices to keep rising. Who knows they may go sky high and end up lookin like a genius.
Bigfoot":1vzmk56c said:
I am still waiting for someone to explain to me what is going to trigger and sustain the ride down. Which of the current things that are driving these prices is going to change enuf to trigger a slump.
Stocker Steve
Well-known member
On the way up many people make money off the inventory gain. They claim even feed lots are showing good profits now !
So some the that sell profit goes into the buy of the next set of cattle...
Even if you don't believe in sell/buy - - I think a few folks have low cost of gain due to local roughage.
I am more interested in other classes of cattle right now (and I just got a hot tip on some registered highlander cows :nod: )
So some the that sell profit goes into the buy of the next set of cattle...
Even if you don't believe in sell/buy - - I think a few folks have low cost of gain due to local roughage.
I am more interested in other classes of cattle right now (and I just got a hot tip on some registered highlander cows :nod: )
sim.-ang.king
Well-known member
3waycross":bxyvxfq2 said:
The Cow That Stole Christmas.
denvermartinfarms
Well-known member
There's been alot of 400lb calves bring 1000$ and 5wts as high as 2.25cwt. I don't know everything, so I can't say if they will make money, I don't see how they could but idk. I will say that I have not bought any calves to put on feed yet this year, because I think there to high and the trend has pretty much got to be down over the next 6 months.
cross_7
Well-known member
denvermartinfarms":2ixu2y3w said:
Futures indicate higher prices
I figure they are contracting them @ 1.70
It'll pencil out if you have a way to get gain and not spend a bunch of money
cross_7
Well-known member
denvermartinfarms
Well-known member
I've got that app, I check it about every 10 minutes :lol2:. I still say I'm not buying any 1000$ 400lb calves to take back the the Salebarn in 6 months. There's other ways to make money with cattle that don't have that kind of risk.cross_7":2dxclji3 said:
If I were buying $2 6wts. right now:
1. I'd send them to my summer grass
2. I'd feed them
3. I'd make sure they were good
Dashboard math makes them $132 B/E against $134-$135 Fats, assuming you have summer grass to put 200lbs. on economically. There's a little in them if you contract them. Having the up of the grid premiums if you're confident they're good or a program boost like certified natural would need to be in play for me to bite. $2-$3 per cwt. locked up isn't really enough in my mind to have to risk margin calls on a straight hedge for that duration of time on any significant number of contracts, so I'd probably contract them direct to a Cargill or someone of that nature. I just contracted some October's par the board and some August's .50 over the board, and still get the potential premiums of the grid. I haven't priced any but I'm almost certain you could contract December .50 either side of it. Myself however, I'm selling 6 wts. right now, as I like the idea of buying back heifers and 725's contracted to deliver around turnout as presently I can buy the gain cheaper than I can put it on once the opportunity cost of not taking the profit on the 550-600lbs. cattle I've got in inventory now is considered. So am I scared of a $2 6wt.? Not really. Am I shipping a pretty fair size bunch of them all this week that I'm pretty content to let someone else own them? You bet.
1. I'd send them to my summer grass
2. I'd feed them
3. I'd make sure they were good
Dashboard math makes them $132 B/E against $134-$135 Fats, assuming you have summer grass to put 200lbs. on economically. There's a little in them if you contract them. Having the up of the grid premiums if you're confident they're good or a program boost like certified natural would need to be in play for me to bite. $2-$3 per cwt. locked up isn't really enough in my mind to have to risk margin calls on a straight hedge for that duration of time on any significant number of contracts, so I'd probably contract them direct to a Cargill or someone of that nature. I just contracted some October's par the board and some August's .50 over the board, and still get the potential premiums of the grid. I haven't priced any but I'm almost certain you could contract December .50 either side of it. Myself however, I'm selling 6 wts. right now, as I like the idea of buying back heifers and 725's contracted to deliver around turnout as presently I can buy the gain cheaper than I can put it on once the opportunity cost of not taking the profit on the 550-600lbs. cattle I've got in inventory now is considered. So am I scared of a $2 6wt.? Not really. Am I shipping a pretty fair size bunch of them all this week that I'm pretty content to let someone else own them? You bet.
