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<blockquote data-quote="somn" data-source="post: 391473" data-attributes="member: 3721"><p>I find that really hard to believe that your friend lost 32 dollars per head on account of the higher corn cost. If he tried to contract all inputs and had made sure he could sell the cattle on the board at a profit I don't see how he lost money. Unless of course he had a high death loss which is no fault of the high corn price. Perhaps your friend could not make a profit on paper thru contracting but he thought he would buy the cattle anyway hoping it would turn around before he sold them. Or perhaps he never tried contracting anything and just bought the cattle. Regardless if he lost money on cattle last go around and he bought in the fall that is poor management. The writing was on the wall in late september early october with the corn price. I find it odd when someone says they lost money feeding cattle in a feedlot on account of the high corn price. Virtually impossible to do. You might not make any money on cattle in the feedlot because of high priced corn but you won't lose any for sure. If you can't make a positive cash flow before you buy on account of high priced corn don't buy them. If you buy the cattle anyway and lose money thats not the corns fault that gets pinned right on poor managment.</p></blockquote><p></p>
[QUOTE="somn, post: 391473, member: 3721"] I find that really hard to believe that your friend lost 32 dollars per head on account of the higher corn cost. If he tried to contract all inputs and had made sure he could sell the cattle on the board at a profit I don't see how he lost money. Unless of course he had a high death loss which is no fault of the high corn price. Perhaps your friend could not make a profit on paper thru contracting but he thought he would buy the cattle anyway hoping it would turn around before he sold them. Or perhaps he never tried contracting anything and just bought the cattle. Regardless if he lost money on cattle last go around and he bought in the fall that is poor management. The writing was on the wall in late september early october with the corn price. I find it odd when someone says they lost money feeding cattle in a feedlot on account of the high corn price. Virtually impossible to do. You might not make any money on cattle in the feedlot because of high priced corn but you won't lose any for sure. If you can't make a positive cash flow before you buy on account of high priced corn don't buy them. If you buy the cattle anyway and lose money thats not the corns fault that gets pinned right on poor managment. [/QUOTE]
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