I thought it was interesting to see that the really young ones still get a very good price even late in Summer. These May prices were not too much different than the early April prices when they seemed really high at the time to me.
This next year, I am going to stock very young steers. Here's why:
One 325 lb steer cost about $458 last May
If he gained 2 lbs/day for 90 days he'd weigh about 505 lbs
And he'd sell for about $590 in Mid August
This would be about a 29% return on investment
Or
One 625 lb steer cost about $715 last May.
If he also gained 2 lbs/day for 90 days he'd weigh about 805 lbs
Well, He would sell for about $788 in Mid August.
This would only be about a 10% return on investment.
Big Difference Here
If I only had $10,000 to invest, Either I could get about 22 small steers at 325 lbs. Or, I could get about 14 older steers at 625 lbs.
Feed for 90 days and sell all that I had at that time. I am assuming an average weight gain of 2 pounds per animal per day regardless of size. Some may argue this point.
The smaller steers would sell for a total price of $12,908.
The older steers would sell for a total price of $11,018.
Gross profit of $2,908 vs $1,018.
Theory only here, but I'd almost triple my investment if I bought the small steers at 325 pounds. Yes, more work, but something to think about. At least I will be thinking about what to buy this next Spring.
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