simme
Old Dumb Guy
Turn on sound on the video. 2980# at $1.19 is $3546 for a slaughter bull! Must have had at least two buyers there. Looks very thick, but I would have not guessed that heavy. Pretty good salvage price on a bull.
They were mine until I sold em to my neigh or last year. He calved em out and sold the calves. The calves brought 750 each one top of the 3 cows! He did well with em. He's going a different direction now.So was that your cows selling?
Pics are coming in the bottle calf thread.I watched a couple minutes of that while a few calves sold...thought maybe you'd bring something home
Yep!Did I read that screen right?? 2980# for 1 animal?? I thought I had big cows!
What are you thinking these cows will be worth in August?Bought 2 cows today. They are 1200 lb black cows bred 7 & 8 months. They cost $1425. That is about my top bid on old broken mouth cows. But they mouth them and called these 2 to be 3-5 years old. They are young enough that they may not get on the truck with the old cows. Young cows for old cow price. No bred cow buyers today. Everything else went to kill.
I said something about cows being $1.90 on the rail again to a kill buyer. He replied no problem doing that this year. We branded them today. I said something to B about them being young cow. He said we will see what their calves look like. Good big calves they might get to stay. Average or less calves and they will get on the truck with the old cows.What are you thinking these cows will be worth in August?
You can do LRP on those 850 wt for fall at around that $2.15.What does everyone think this fall will be like??? One friend that runs 50-60 or so out to pasture and has a guy that normally buys them, offered him 2.15 for them this fall... 850 wt average...guaranteed now... and the friend turned him down... I think he is nuts but I haven't looked at the futures on those weights...
LRP has nothing to do with his cattle. It is an insurance on the nation wide market. Has nothing to do with what his cattle bring or how he sells them. If you think that the over all market is going to trend down it is probably a good bet.So, if he does the LRP for the 2.15, and the going price is 2.20, he would have to pay for the ins costs... but if they bring less, then he would get compensation for them right? Does it matter if he sells privately? I still have some trouble wrapping my head around it... I know, that seems dumb...I can sometimes be dense.... I just would have taken it as he will be making a profit over what he will have in them.... plus this guy buys them most every year for the last 8-10 years... so to me it seems a smart move to lock it in with a trusted buyer... no commissions, no shrink, nothing like that.. they load them, go weigh them, and he gets paid....
So would you buy LRP or not? I would sign a contract for the 2.15 and be happy. But $49 is .06 a lb so it would lower the price to 2.09 if you sold for 2.15.LRP has nothing to do with his cattle. It is an insurance on the nation wide market. Has nothing to do with what his cattle bring or how he sells them. If you think that the over all market is going to trend down it is probably a good bet.
The quote I got on Friday said their expected value of 850 lb steers is $218.91 on October 23. There is 10 levels that you can buy. The low is $199.91 the cost of that was listed at $12 a head. The high was $217.91. The cost at that level was listed $49 a head. The closer you insure to their expected value the higher the cost.
I sure wouldn't pass the contract. I would make sure that the contract was solid and I would sell. Also the LRP value is nation wide so how does your local market compare to the nation wide market. That would be a consideration for me. A forward contract is a world of difference from LRP. To me LRP is a tool to use when you are worried about the market going south. I think it is also useful not to buy it but to look at the projected value. Where do the "experts" think the market is going. Minus the contract offer I might consider the lower end LRP. That is $12 a head to say the market is still essentially at $2 ($199.91)for 850 lb steers. I get the offers via email everyday M-F. I don't read them everyday but often enough to warch for trends. The way it is now the expected value has been growing steadily. If it were headed the other way I might jump on it.So would you buy LRP or not? I would sign a contract for the 2.15 and be happy. But $49 is .06 a lb so it would lower the price to 2.09 if you sold for 2.15.
You bring up a great point. A load of 850's here is probably worth .10-.15 less here than the best areas.I sure wouldn't. I would make sure that the contract was solid and I would sell. Also the LRP value is nation wide so how does your local market compare to the nation wide market. That would be a consideration for me. A forward contract is a world of difference from LRP. To me LRP is a tool to use when you are worried about the market going south. I think it is also useful not to buy it but to look at the projected value. Where do the "experts" think the market is going. Minus the contract offer I might consider the lower end LRP. That is $12 a head to say the market is still essentially at $2 ($199.91)for 850 lb steers. I get the offers via email everyday M-F. I don't read them everyday but often enough to warch for trends. The way it is now the expected value has been growing steadily. If it were headed the other way I might jump on it.
Back in 2015 I forward contracted a semi load of bred heifers in June. I got more for them than I got in 2014. In July or August the market dropped like a rock. I still got the contract price and I was very glad I had contracted them.
I man I know advertises in the Oregon cattlemens' monthly publication. He sells both LRP and PRF (drought insurance). He is an agent for CKP insurance. I believe they are based out of Florida. Should be able to look them up online and find a local agent.@Dave, how do you get on a list like you mentioned about getting daily updates on things like that? I go on DVAuction often to check up on prices and all...
Virginia Cattlemen Association sells the LRP in your area Jan.Thanks, @Dave ... Yes I realize it is not for "his cattle" specifically, but based on the nationwide price. I wasn't sure about the selling end... thinking maybe they had to be sold at a recognized place... but then, that's a dumb thought on my part... Sometimes I can wrap my head around a concept... and sometimes it just escapes my common sense. Your explanation made alot more sense to me....
My son is good friend's with this guy... and the guy that offered him the 2.15 has always been a good trusted buyer.... so i would think the contract was very good...
I would have made the deal and been satisfied with a guaranteed price down the road... if it tanks he will really lose out... Like @kenny thomas .... sign it and be happy... trying to wring out the POSSIBILITY of more sometimes is greedy. Yes, we all want to top the sale so to speak... but making a decent amount is sometimes better than chasing the last penny...
Another good point kenny made about the location of the animals vs the sale price... yes, here we often see a bit of a discount due to the trucking of animals to more distant feedout lots...
Another reason to have made the agreement... especially with no commission costs and no drift loss...
Oh well, we shall see..
@Dave, how do you get on a list like you mentioned about getting daily updates on things like that? I go on DVAuction often to check up on prices and all...