Frowned upon Cattle Sales

[skyhightree1]

I have been working the numbers on buying cattle at one sale lets say on a Thursday and Selling them at another sale the next Tuesday. I was talking about this at the feed store and they said they didn't think that was a right thing to do for a cattleman. Why is this a wrong thing to do? I figured im taking the risk of losing $ however unlikely at this day and age but still its a risk.

 

[AllForage]

I have a couple barns here where that would work. Have not done it yet, but I thought with the stress and shrink you would at least need to hold em for a month. If freshly weaned your scenario would be enough time for a wreck with pneumonia to pop up I would think? Maybe.

 

[skyhightree1]

potentially... I have no problem keeping them a week or 2. The price difference between 4wt and 5wt calves is .50 a lb so I feel like I could still come out ahead on them maybe. I am just tossing an idea around I have worked the #'s and did a market analysis for the last 3 months.

 

[TexasBred]

Traders been doing it for ages. I personally don't see anything wrong with it. I'm sure they do ok at it or they wouldn't keep on doing it. Use to know a dairyman that would get down in the pen with the weigh cows (mostly holsteins) and bump them...99% of them were never palpated before sending to the sale and some guys tried and were just no good at it. As long as they had a sound udder he would buy a lot of holstein cattle at packer price. He would haul them home, brand them, new ear tags and hold them for as long as necessary then haul them to a dairy sale and sell as springers. Made a lot of money off other peoples ignorance or lack of skills.

 

[AllForage]

potentially... I have no problem keeping them a week or 2. The price difference between 4wt and 5wt calves is .50 a lb so I feel like I could still come out ahead on them maybe. I am just tossing an idea around I have worked the #'s and did a market analysis for the last 3 months.

I have the same thing here. 2 barn about and hour and a half apart. .50 cent difference on the same weights. I keep saying I will buy enough to make a full load out of the few I haul to the sale every year.

 

[skyhightree1]

Traders been doing it for ages. I personally don't see anything wrong with it. I'm sure they do ok at it or they wouldn't keep on doing it. Use to know a dairyman that would get down in the pen with the weigh cows (mostly holsteins) and bump them...99% of them were never palpated before sending to the sale and some guys tried and were just no good at it. As long as they had a sound udder he would buy a lot of holstein cattle at packer price. He would haul them home, brand them, new ear tags and hold them for as long as necessary then haul them to a dairy sale and sell as springers. Made a lot of money off other peoples ignorance or lack of skills.

:lol2: Yea im not trying to cheat anyone just see an opportunity to make $

 

[skyhightree1]

potentially... I have no problem keeping them a week or 2. The price difference between 4wt and 5wt calves is .50 a lb so I feel like I could still come out ahead on them maybe. I am just tossing an idea around I have worked the #'s and did a market analysis for the last 3 months.

I have the same thing here. 2 barn about and hour and a half apart. .50 cent difference on the same weights. I keep saying I will buy enough to make a full load out of the few I haul to the sale every year.

same distance as these basically lol You sure you aint in va

 

[skyhightree1]

Example of the differences

Feeder Steers Medium and Large 2
Head Wt Range Avg Wt Price Range Avg Price
2 300-400 363 260.00 260.00
4 400-500 461 237.50 237.50

Feeder Steers Medium and Large 2
Head Wt Range Avg Wt Price Range Avg Price
20 300-400 374 269.00-289.50 288.43
67 400-500 449 263.00-285.00 282.75

 

[AllForage]

Here are the 2 near me





Feeder Cattle 9-8-14
Beef Steers under 400 lbs. 150-275
Beef Steers 400 to 600 lbs. 150-200
Beef Steers 600 to 800 lbs. 120-180
Beef Steers over 800 lbs. 105-158


Beef Steers under 400 lbs 280 - 385
Beef Steers 400 to 600 lbs 210 - 260
Beef Steers 600 to 800 lbs 175 - 220
Beef Steers over 800 lbs 175 & down

 

[M5farm]

I would offer a suggestion on who to talk too but that bridge has been burned.

 

[skyhightree1]

Here are the 2 near me





Feeder Cattle 9-8-14
Beef Steers under 400 lbs. 150-275
Beef Steers 400 to 600 lbs. 150-200
Beef Steers 600 to 800 lbs. 120-180
Beef Steers over 800 lbs. 105-158


Beef Steers under 400 lbs 280 - 385
Beef Steers 400 to 600 lbs 210 - 260
Beef Steers 600 to 800 lbs 175 - 220
Beef Steers over 800 lbs 175 & down

Its crazy how only a couple hours away the price differs

I would offer a suggestion on who to talk too but that bridge has been burned.

:lol2:

 

[skyhightree1]

To me its money left on the table Allforage.

 

[ibetyamissedme]

sky in my opinion you should hold everything 60 days just to be safe.

 

[skyhightree1]

sky in my opinion you should hold everything 60 days just to be safe.

Thanks for suggestion I guess If I kept them that long I should buy about 30 to make it worth while. I was just looking at buying 10-12 per week and turn and burning them.

 

[M5farm]

sky in my opinion you should hold everything 60 days just to be safe.

Thanks for suggestion I guess If I kept them that long I should buy about 30 to make it worth while. I was just looking at buying 10-12 per week and turn and burning them.

what do you think the shrink will be?? They were hauled to one sale. sold loaded to go to your place turned out loaded back up and hauled to another run thru the ring again. I would think any gains you get on price would ne negated by shrink. But I don't know for sure.

 

[Bigfoot]

Just my thoughts, I think animals should only represented as farm fresh, if they've been owned 30 days. Nothing wrong with shipping to another sale, a few days after purchase, as long as they are represented as "bouncers".

 

[skyhightree1]

sky in my opinion you should hold everything 60 days just to be safe.

Thanks for suggestion I guess If I kept them that long I should buy about 30 to make it worth while. I was just looking at buying 10-12 per week and turn and burning them.

what do you think the shrink will be?? They were hauled to one sale. sold loaded to go to your place turned out loaded back up and hauled to another run thru the ring again. I would think any gains you get on price would ne negated by shrink. But I don't know for sure.

I honestly don't know about shrink aspect of how much they would loose. I knew there would be some just don't believe it would be enough to make a difference. I don't know.

 

[M5farm]

One of the largest overlooked costs to the stockman is shrink, when selling cattle. For example, if you have 100 calves you are taking to a feeder calf sale, to be weighed off the truck and a two percent pencil shrink taken, those calves may have already lost six percent or more of their actual weight just in the process of getting them to market, resulting in at least an eight percent shrink deducted from your paycheck. Or, if calves are weighed at the ranch when sold to an order buyer, he may take a three to four percent pencil shrink when they are weighed, even though the animals have already experienced a shrink of two percent or more just by gathering and sorting, or by standing in a corral overnight. Calves that are poorly handled may lose three percent of their body weight just while being sorted. The number of actual pounds involved may be more important than the price you are receiving for your animals. You don't have much control over the price you get for your calves but you can usually control the amount of shrink loss.

http://www.cattletoday.com/archive/2008 ... 1737.shtml

you also have to factor cost of fuel to and from each sale barn as well as time setting their bidding. Personally it would be 2 big of risk for me once it is all factored in.

 

[skyhightree1]

M5 Thank you very much for that link. I figure if I do try it once that will tell me whether to proceed or not. Nothing ventured nothing gained. The cheap sale barn may cost me 25 bucks worth of fuel to and from and other sale barn 100 because I sell at the furtherst one and typically fill up before going. The shrink aspect would b biggest concern.

 

[highgrit]

Your not the first one to think about doing it. The order buyer's will school you good the second or third time it. Good luck your going to need it.