Backgrounding

[Flatbroke]

I try to background a few steers and I think the 2012 market is going to make it hard on me.
1) feed is high this year corn is way above normal. Even Hay is over 100/T
2) Steers are going to be 1.7 or more a hundred this fall acording to my crystal ball
does not leave much for my little slice of the pie.

On the other hand the big feedlots are feeling the pinch on corn and feed stuffs and as a result are going to be looking for steers that weigh up a bit to help them out( same crystal ball)

That should put some upward pressure on the back to grass steers in the sring of 2013
As should the lower cattle numbers in the country.

So what is a small fry to do this year. Might be a good year to look for quality heifers and loose the idea of steers, shoot for selling B-heifers in 2013 What does all-ya'lls crystal ball say? :cboy:

 

[Aaron]

I don't buy backgrounders when the price is high - no margin/too much risk. Everybody I know that thought they could do it is taking them to pasture and sell in the fall at over 1000 lbs. Still a lot of risk, but there may be a margin there. Time will tell.

Even on the bred heifers, really crunch the numbers. Open yearlings in the spring at $1000 or better, breed them and pasture them and hope you don't lose any. By the time you buy a bull to breed them with at today's prices, might not be much of a margin left.