buying loads sending to feedlot

[tncattle]

Anyone on here do this or have ever done it. Buying loads of steers and sending them straight to the feedlot and retaining ownership? Talk about the advantages & disadvantages.

 

[bigbull338]

do not even consider buying potloads of steers an retaining ownership.because that only works out for the feedlots as they send you a monthly invoice on how much you owe them every month.an alot pf people doing that just barely break even.

 

[inbredredneck]

Over the years I have realized a couple things, first is usually when a feedlot wants to feed your cattle not theirs, one of two things has happened, first is they are not able to secure anymore financing than they currently have on the books. Or second is with their current operation, their cost of gain, their debt carrying load, and the current marketing opportunities they can not guarantee themselves a profit.

Thats not to say you or someone else cannot make a guaranteed profit, the numbers are all easy to find, look the numbers up, make some calculations it may work for you.

 

[js1234]

As long as you know your break-evens and buy HEALTHY cattle with those figures in mind you should do fine. If you don't have money to lose, just don't let yourself become a speculator buying cattle at a loss betting on an upswing.If you can't buy the cattle for a delivered price that allows you to hedge a break-even, let them pass. The key is to understand ALL the costs involved. Also, on the upside, don't let yourself become a speculator. Pick an acceptable % return and if/when the board hits a price that allows that, sell the board. If it goes higher, don't sweat it. As long as you have the cash to make your margin calls you are good. It's always the worst to be trying to squeeze one more dollar out of the market and wake up to a limit down morning. The thing about feeding cattle is that the math is fairly easy and if numbers don't reflect a reasonable opportunity for a return that is satisfactory, just don't do it.