Feeder cattle futures

[Dave]

I see that feeder futures are all on the up side of $1.40. There is a young guy here who worked in a big feedlot for years. He has a pretty good understanding of the futures and insuring a market price. He told me yesterday that you can insure a 600 pound steer right now for $1.56. That isn't bad money. I don't know what the insurance cost to do that. I will have to look into that.

 

[kenny thomas]

It's according to what% of that 1.56 you insure them for. And what month. But sounds like it could work.

 

[sstterry]

I am all in on higher prices, as long as my calves are big and old enough! :lol2: :lol2: :lol2:

 

[Stocker Steve]

I don't understand why feeder prices are going up?

Last I herd there was a million missing corona cattle and some restaurants are closing again.

 

[Dave]

I don't understand why feeder prices are going up?

Last I herd there was a million missing corona cattle and some restaurants are closing again.

I rarely understand the ups and downs of the futures market. Other than the shiny shoe boys figure that it was under valued so they buy in??????

 

[Stocker Steve]

Traders expect to make money off of movement - - up or down. This may be a good fall to have LRP as long as you can lock in a profit.

I don't think there are a million extra 2019 calves being held on the back 40, but there are some. I heard the smart money is grazing yearling heifers. :nod:

 

[Dave]

Traders expect to make money off of movement - - up or down. This may be a good fall to have LRP as long as you can lock in a profit.

I don't think there are a million extra 2019 calves being held on the back 40, but there are some. I heard the smart money is grazing yearling heifers. :nod:

The smart money contracted 400 yearlings for a August 1st delivery back in late November with a profit written in before they even bought the calves. I just got to throw in a few to go along for the ride.
I have known a couple guys who have done this. Contract cattle for a late summer delivery. Know their costs, write in a profit, and buy calves with all this information to base the price they are willing to pay. Today I look at the price I was given to buy for them. There was $150-$200 a head profit figured in.

 

[Stocker Steve]

Many forget to include a profit when they are figur'in. Just having too much fun doing it the old way.

I shipped 5 cows and turning out the back up bull this morning. The cows had two strikes each and were no longer on the business team. Hawkeye the bull promised to work hard and bring the profit home.

 

[snoopdog]

I don't know anymore, our weaned and vacced calves didn't bring any more than the lighter weights off the trailer, and they stole our fats@ 868ib at 1.07

 

[bird dog]

Did they announce them as weaned and vac'ed? Sold one at a time at a sale barn?