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Feeder calf prices
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<blockquote data-quote="Howdyjabo" data-source="post: 284096" data-attributes="member: 391"><p>that post makes NO sense-.</p><p></p><p>But Maybe I need to clarify on my end--so here goes</p><p></p><p>Feedlots the last few years have been putting in weanlings instead of yearlings because the cost/animal has been so high and with the cheap grain prices they are making their money on---- more weight put on each individual animal.For example 400lbs to 1200+ = 800lbs+ </p><p>compared to 800lbs to 1200+ = 400lbs+</p><p></p><p></p><p>Cost of grain goes up-- there is more value again in the backgrounded(ie heavier and older) animals.</p><p>Because the feedlots will again need the heavier animal to feed out fast and they won't be pushing the market on the smaller stuff.</p><p></p><p></p><p>I'm REALLY simplifying here but............... </p><p>I think people forget that there is only so much money to be made/animal in the commercial meat market. Beef has to compete with chicken and pork- so unless all go up at the same time the others can't individually raise their prices without looseing market share.</p><p>So There is very little "raise the end price" to compensate for increased costs. So it has to shift around between all the players. Cow/calf guy to preconditioners or backgrounders to feedlots. Most of the time this involves one of the levels to absorb the shortfall if one of the others gets the cream.</p></blockquote><p></p>
[QUOTE="Howdyjabo, post: 284096, member: 391"] that post makes NO sense-. But Maybe I need to clarify on my end--so here goes Feedlots the last few years have been putting in weanlings instead of yearlings because the cost/animal has been so high and with the cheap grain prices they are making their money on---- more weight put on each individual animal.For example 400lbs to 1200+ = 800lbs+ compared to 800lbs to 1200+ = 400lbs+ Cost of grain goes up-- there is more value again in the backgrounded(ie heavier and older) animals. Because the feedlots will again need the heavier animal to feed out fast and they won't be pushing the market on the smaller stuff. I'm REALLY simplifying here but............... I think people forget that there is only so much money to be made/animal in the commercial meat market. Beef has to compete with chicken and pork- so unless all go up at the same time the others can't individually raise their prices without looseing market share. So There is very little "raise the end price" to compensate for increased costs. So it has to shift around between all the players. Cow/calf guy to preconditioners or backgrounders to feedlots. Most of the time this involves one of the levels to absorb the shortfall if one of the others gets the cream. [/QUOTE]
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