Feeder steers?

[tncattle]

I posted this on a different thread and it kind of got lost, so here it is:

O.K. finally maybe something that is simple and I might be able to understand.

A Feeder is a steer?
It is around 400-450 pds.?
You can buy it for about how much? (I'm in the middle Tn. area)
It takes about 100-120 days to sell it at about 200 pds bigger than you bought it on good pasture grass. Right?
The big one: about how much more can you sell it for than you bought it?

Bare with me guys I'm learning.

 

[Sir Loin]

tn,
Here is a sale barn where we sometimes buy and sell.
Click on this to see prices : http://www.ams.usda.gov/mnreports/nv_ls140.txt

You can probably find one closer to you here.
http://www.ams.usda.gov/LSMNpubs/CFATN.htm

 

[tncattle]

I don't I understand those prices. They seem awful cheap, are they as they look or is there some kind of way they are posted that only experienced cattle people understand?

 

[Caustic Burno]

tn,
Here is a sale barn where we sometimes buy and sell.
Click on this to see prices : http://www.ams.usda.gov/mnreports/nv_ls140.txt

You can probably find one closer to you here.
http://www.ams.usda.gov/LSMNpubs/CFATN.htm

Dang good prices on slaughter bulls

 

[jnowack]

I don't I understand those prices. They seem awful cheap, are they as they look or is there some kind of way they are posted that only experienced cattle people understand?

Prices are per hundred weight. For example if the price is $120.50 for a 500 lb calf you take $120.50 X 5.00 = $602.50

 

[tncattle]

can someone PLEASE explain the prices. I don't understand how they are listed. I know a slaughter bull over 1000 pds. ain't selling for 50 or 60 bucks!?

 

[Susie David]

You will get less per pound for the animal when it sells as a heavier steer. The "margin" is what is made on the difference in the weight of the animal from the time bought and time sold.
How about this...you buy a smaller animal for more money because you can grow it into a larger animal for little money if you have the pasture. You sell the heavier animal for less money(per pound) because the next fella can't grow it as you
did. The money that is made is in the amount of gain the animal had during the time he was in your care. Fact of life....bigger animals sell for less that lighter younger ones do.
I hope that there are more eloquent folks that can explain it better and more simply than I tried to do.
And that's just my two bits worth...asked for or not...DMc

 

[tncattle]

O.K. I must be the dumbest guy there is trying to understand cattle prices. Can someone PLEASE answer the question this way.

If you bought calves or feeders and then sold them at the correct time what is the money?

In other words: How much would you expect to pay to buy (total price)?

And how much would you expect to receive when you sell (total price)?


Thank you!!!

 

[Sir Loin]

tn,

OK, let me give it a try.
From the Athen stock yard.

Feeder Steers Medium and Large 1 - 2
Head Wt Range Avg Wt Price Range Avg Price
2 210-240 225 128.00-130.00 129.07

Two head were sold, the average price of the two was $129.07 per 100 pounds.
With an average weight of 225 lbs (that's 2.25 ) (100 lbs) :
$129.07 X 2.25 = $290.40 avg. cost per steer

Using the same sales report and you kept this steer until he reached the 555 range:

15 555-594 581 92.00-98.00 93.76

Upon your sale, again using average weight and sale price, it would look like this:
Weight: 581
Price: $93.76 per 100 lbs.( that's 5.81 100 lbs)
Sale price: $93.76 X 5.81 = $544.74

So you bought a 225 lb steer for $290.40 and sold a 581 lb steer for $544.74
That's a gain of $254.34 (less expenses)

And as someone else stated, as the weight goes up, the price per hundred lb goes down, as this report shows.

 

[Howdyjabo]

no one can answer that-- it changes day by day.
people have feelings about how things are going to go- but thats all it is.

You buy calves for what you can get them for today--- and sell them for what you can get latter.
USDA posts what area sales are doing each day- having a computer has made that easier to keep up with.
Futures give an idea of what people are gambling that cattle will be worth latter- Watch them rise and fall and you'll see that no one knows for sure whats going to happen in the future

It can happen that You can buy calves for $500 each and sell them 400lbs heavier for $300 each. thats just how the game is played-every now and again you loose big.

 

[Matt S]

O.K. I must be the dumbest guy there is trying to understand cattle prices. Can someone PLEASE answer the question this way.

If you bought calves or feeders and then sold them at the correct time what is the money?

In other words: How much would you expect to pay to buy (total price)?

And how much would you expect to receive when you sell (total price)?


Thank you!!!

If I were to buy a feeder steer at an average weight of 417 pounds, I would expect to pay $121.79 per hundred weight at the above listed market price. That equals $507.86.

If I were to sell a feeder steer at an average weight of 721 pounds, I would expect him to sell at $84.16 per hundred weight at the above listed market price. That means he would sell for $606.79. You would also have to take off the stockyard's commision from your sale total.

 

[tncattle]

O.K. that makes more sense, Thank you! How soon can you buy calves and sell them at around 400 pds? How long does a calf need mother's milk? When can they start eating pasture grass?

 

[medic_941]

to add to what tn is asking...so do you guys think it is more profit to buy bottle calves and raise up to 400-500 pounds and sell...or to but weaned at say 250 pounds and raise up to 500-600 pounds...which do you think is the better investment?

 

[Workinonit Farm]

to add to what tn is asking...so do you guys think it is more profit to buy bottle calves and raise up to 400-500 pounds and sell...or to but weaned at say 250 pounds and raise up to 500-600 pounds...which do you think is the better investment?

I would say that buying weaned 250's is a bit of a better bet. While there will always be risks in everything, IMO bottle calves (especially dairy) are more risky and you would have more invested in them in the form of milk replacers, starter feeds, meds, etc. And, generally speaking, they don't bring as much at the 'market' as the beef breeds do.

This is just a generalization, and just my opinion.

Katherine

 

[Crowderfarms]

O.K. that makes more sense, Thank you! How soon can you buy calves and sell them at around 400 pds? How long does a calf need mother's milk? When can they start eating pasture grass?

Cut your losses and buy some light weight Calves.If you were to go the Bottle Calf route, expect losses, and a lot of labor, and was mentioned Milk Replacer and medicine.

Buy Calves at around the 250 Lb. wts. and put them on quality feed and good hay, good pasture plenty of fresh water and in a few months they should be ready to re-market. Keep your pencil sharpened and if you play your cards right, you should be able to turn a decent profit.-And lastly as long as the markets stay good.

 

[donnaIL]

Its not as easy as it sounds to put the pounds on, especially if you buy the lightweights. Calves grow alot faster and bigger on their mommas. We've bought 500#'s and feed them out, have cows and calves and feed the calves and all has went well.

Last year we figured we'd buy some smaller calves and feed out a few more.. (200-350#).. they just did not grow the same.. could be the quality of the sale barn, but these were good looking baldie calves. I will be relucatant to try that again... Just took them to the processor last week one did hang out at 715lbs..the other less, they were finished after 12+ months of feed.. just seems they did not grow as well or as big as our own have.

Remember you cannot feed an animal to better than it is..it is like feeding someone to be 6 feet tall when they are only going to be 5'5". And remember to count what you paid for them and what it is going to cost to feed them, you could end up doing it for little or nothing. Donna

 

[Matt S]

Make damn sure you buy calves that are weaned, or you have the facilities to pen them up while they get "momma" out of their system. The last thing you need is a bunch of hair brained calves finding a weak spot in your fence and getting out. The old timers around here say to wean when the moon is in the Pisces. That info can be found in the Farmer's Almanac.

I've said it before and I'll say it again: Find a local cattleman who will let you ask questions. (But don't stop asking them here!)

 

[Bama]

I buy light calves and turn them as 6-7 weights. Theres a lot of risk doing this. Several people in the area have tried to mock me and loose bigtime. You have to buy the right calf at the right time and the right weight for the right price. Then you have to put weight on them for the least amount of cost. Then sell them at the right weight at the right time for the right price. You will have to know each and every cost. I do it by dollars per day. I know how much each calf is making/costing me per day. You also have to know how much it cost you to push them. If I get them up to 3 pounds gain per day and they "topout" to early I won't get the profit I would have if I had held them at a lower input cost and gain and sold in a more favorable market. You have to learn how much input to put into them and how much output to expect. You have to learn which weight to buy at what time of year. How much cost and gain to put into them. You also have to look at what market your trying to hit. Markets depend on feedlots. How many they have on feed, how many they want on feed, and how bad they want em. If you go into this on a hit or miss attitude you will find you will miss as often as you hit. There money to be made doing this. The trickey part is making that money stop in your hands and not all the other folks holding out their hand also. ( feedstore, vet, feedlot buyer, origional owner, fertlizer man, tax man, equipment dealership, fuel man, chemical supplier, hay supplier, etc...)

 

[Central Fl Cracker]

Buy and read the book Stocker Profits and you be the judge if there is any money in stockers.

 

[Rod]

I've averaged a net of around $125 a head for the last three years on steers. I buy @ 250lb to 330Lb steers during march and sell @ the 550 to 600lb range around september. Its alot of work when you receive them as you will have to vaccinate them immediatlely and get them started on a good recieving feed for the first couple of weeks. They are at a high level of stress from weaning and going through the sale barn and are exposed to all the illness at the salebarn, so you can expect a 10% deathloss. Medicine,feed,deathloss,sales commissons and transport cut the bottom line pretty quickly, and thats not even taking your time into consideration! Markets got alot softer lately so i'm not sure if I'll be in the game this year.