FEEDLOT

[Rod]

I've got about 70 650-700 weights and was brainstorming about sending some to a feedlot. I know nothing about this end of the business and was wanting to hear the pluses and minuses and risks. Thanks.

 

[DD RANCH]

I've got about 70 650-700 weights and was brainstorming about sending some to a feedlot. I know nothing about this end of the business and was wanting to hear the pluses and minuses and risks. Thanks.

I would sell them not retain ownership at the prices of feeder calves I would'nt take a chance on it.

 

[Susie David]

I'd check the current trends and evaluate your potential profit.
If you retain ownership do you have a strong market and at what expense. Up here 6-7 weights sold 107-115 on Monday which is steady considering that other weights were down.
IMO prices are starting the seasonal decling so I'd make a decision quickly. We usually wait another few weeks to make some steer buys...but then we buy not sell this time of the year. DMc

 

[Texan]

Rod, if those are yearlings and not calves, you should be able to sell them pretty high. There's not many yearlings available now and if they're same-sex and uniform enough to feed together, having a load of them like that should get you top dollar.

Here's the projected closeouts for cattle going in this week. Look at the bottom graphic, for Projected Breakevens. It shows them losing over $16/hd.

http://www.agcenter.com/bench_frame.asp

My personal opinion is that you consider feeding cattle when cattle are cheap. When cattle are high, let somebody else feed them.