branxchar&charx
Well-known member
Watched several bulls about 2k lbs at okc west yesterday bring over $2.
I thought about buying a few breds but not at these prices currently.
Feeder futures
- Thread starter kenny thomas
- Start date
I thought about buying a few breds but not at these prices currently.
kenny thomas
Well-known member
I may be wrong but i feel there will be a better time to buy breds. But all bets are off now. New record highs every week.
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MurraysMutts
Well-known member
I'll just put this here....
farmerjan
Well-known member
We are going to get in the 2 groups with calves born last fall. in the next couple weeks. Preg checks and son said he is going to ship the calves without being weaned and "hardened" for the usual 60 days or more........ we will probably keep most of the heifers. But steers will most likely not be kept over and weaned... might keep the smaller ones for awhile... 2 small groups of 3 wts brought over $5.00 last Friday... 4 wts and light 5's were well up in the mid to high $4.00 range. Hard to keep a steer worth $1900 or so....
GoWyo
Well-known member
TYMAR - take your money and run
kenny thomas
Well-known member
For some of us this might be a good option. I have several health problems so its very hard for me to get things done right now. Also we have an Amish community getting started so that has jumped land prices also. Might be time to consider retirement, again.TYMAR - take your money and run
Hpacres440p
Well-known member
I like the market explanations at the bottom. Screw worm is going to be a big deal again.
kenny thomas
Well-known member
August feeder futures are 297.625 now. Thats down 8.50 since Monday.
Dave
Well-known member
The futures market isn't real cattle. It is the shiny shoes boys who play with the commodity market to make money. Those ups and downs are mainly based on how those boys have positions and if they want to buy or sell based on the positions which they hold.
kenny thomas
Well-known member
Yes but it heavily effects the real sales also. Plus the Livestock Risk Protection is based off futures.
Dave
Well-known member
I have heard on here several times that the LRP is based on futures. But that is not at all how the LRP basis has been explained to me by my insurance man. My agent says it is based actual sales in 10 locations around the country. He has said absolutely nothing about the futures being connected to LRP in any way shape or form. I have known that man for over 20 years and have found him to be nothing but truthful and honest.
chevytaHOE5674
Well-known member
Right from the USDA LRP paperwork
"LRP Feeder Cattle insurance coverage prices and rates are based
on the Chicago Mercantile Exchange's (CME) Feeder Cattle Contract, which is cash settled
to the CME Feeder Cattle Index."
Always remember you get paid off the insurance policy, not the agents bs. Do not get confused and think they work for you in any way.
Dave
Well-known member
He is not a full time agent and I knew him probably 15 years before he had any involvement with insurance. He is a rancher who does a little insurance on the side.
Dave
Well-known member
We are talking 2 different ends of LRP. Lets say you want to sell your cattle in October. The futures market is what is used to by the powers to be to determine what the value will be in October. Using hypothetical numbers, lets say the futures on feeder cattle is $3. The top level of insurance is a little down from $3. I am not certain how much it is down but will just say 98% which is $2,94. There are levels rating down. I will say the lowest level is 88% which is $2.64. If you insure at the top rate it will cost you $36. The bottom rate will cost you $2. The pay off is based on real numbers from 10 market around the country. If the real numbers are above the $2.94 and you insured at the top level you have to pay the premium. If the real numbers are below that $2,94 you get paid. Same goes with the low rate if the real market is above that $2.64 you pay the $2. Below that level they pay you. Going in is based on the futures market. Paying out it based on the real market value.
Silver
Well-known member
This is what confuses some people. At least up here with our insurance anyway. It is hard for a lot of people to understand that they don't get paid based on what their cattle sold for. You do not insure your cattle, you insure the market. There is a ( potentially) big difference.
chevytaHOE5674
Well-known member
The actual ending value of LRP is based on the CME feeder cattle cash index price which is a national
average cash market price for 650- to 850- pound steers. The reported index is a seven-day weighted average of USDA reported prices from a 12 state region (Colorado,
Iowa, Kansas, Missouri, Montana,
Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wyoming) using prices from auctions, video and Internet sales, and direct trades.
Without the CME futures market we would have no basis for the future value of cattle to base the LRP around. The futures market and LRP go hand in hand.
average cash market price for 650- to 850- pound steers. The reported index is a seven-day weighted average of USDA reported prices from a 12 state region (Colorado,
Iowa, Kansas, Missouri, Montana,
Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wyoming) using prices from auctions, video and Internet sales, and direct trades.
Without the CME futures market we would have no basis for the future value of cattle to base the LRP around. The futures market and LRP go hand in hand.
sassafras manor
Well-known member
So I have some LRP questions....how many head of feeders must a person have to enter in the program? Do you enter 100% of the calf crop or a lesser percentage? Does breeding matter or must breed be confirmed? What happens if a calfs weight falls in the upper category? Thanks!
Dave
Well-known member
As many or as few as you want. The program is not insuring your calf. It is insuring what the market will be on the designated date.
