Help Me Understand.....

Help Support CattleToday:

Hasbeen

Well-known member
Joined
Jan 23, 2006
Messages
504
Reaction score
0
Location
Southeast Kentucky
I've asked this before and thought about it a lot, but I can't seem to figure it out. Here is the results of Tuesday's Auction at the London, Ky. sales.

Feeder Steers: Feeder Heifers:
Medium and Large 1: Medium and Large 1-2:
200-300 144.00 300-400 119.00-125.00
300-400 118.00-130.00 400-500 107.00-112.00
400-500 115.00-128.00 500-600 95.00-101.00
500-600 105.00-112.00
600-700 95.00- 98.00
700-800 95.00-102.00

Why does a 300 lb. calf bring 144 per cwt. yet a 800 lb'er bring only 102.00? I see this type of price difference every week and although I realize the difference in the check is almost $400 in favor of the bigger calf, I can't figure why the difference in price-per-pound is so large. Can anyone explain it so that a dummy can understand?
 
When I copied and pasted for the above quote, there was a space between the left and right columns. Anyway, I think you can see that's steers on the left, heifers on the right, single column toward the bottom is steers only.
 
Would YOU pay $1150 for a freezer beef?????

That's why we sell our calves b/w 400-4450 lbs

Those are some pretty good prices. :)
 
The reason is that the lighter the calf, the longer it takes to finish them. A 300 lb calf will probably not be finished until he is at least 18 months old, and possibly not until after 24 months. A 700 - 800 lb calf should be finished by about 14-16 months.
 
randiliana":2op6r3it said:
The reason is that the lighter the calf, the longer it takes to finish them. A 300 lb calf will probably not be finished until he is at least 18 months old, and possibly not until after 24 months. A 700 - 800 lb calf should be finished by about 14-16 months.

OK, I'm still not getting it. If the 800 lb calf can be finished in less time, (thus cheaper), why pay more (per pound) for the 300 lb calf?
 
Everybody's got to stand a chance of making a profit. If the heavy calf brought the same per lb. as the lighter calf, there wouldn't be much chance left for the feeder, since you've already gotten a lot of the gain.
 
Even though the lighter calf brings more per lb, most of the time he brings less total dollars. It really boils down to how many total dollars an animal costs - going into a feedyard and coming out - that determines whether any money was made.
 
Hasbeen":3t01tttl said:
randiliana":3t01tttl said:
The reason is that the lighter the calf, the longer it takes to finish them. A 300 lb calf will probably not be finished until he is at least 18 months old, and possibly not until after 24 months. A 700 - 800 lb calf should be finished by about 14-16 months.

OK, I'm still not getting it. If the 800 lb calf can be finished in less time, (thus cheaper), why pay more (per pound) for the 300 lb calf?

Whoa, I guess that I didn't read your first question correctly :oops: Now I've confused myself.

The reason would have to do with how much they figure they can pay (per animal) and still make money in the end. So if they figure that they can make money if they spend $450 on a 300 lb calf they will spend 1.50/cwt, where as if they figure that they can make money buying an 700 lb calf for $800 then they will spend up to 1.14/cwt.
 
randiliana":29e3b5a2 said:
Hasbeen":29e3b5a2 said:
randiliana":29e3b5a2 said:
The reason is that the lighter the calf, the longer it takes to finish them. A 300 lb calf will probably not be finished until he is at least 18 months old, and possibly not until after 24 months. A 700 - 800 lb calf should be finished by about 14-16 months.

OK, I'm still not getting it. If the 800 lb calf can be finished in less time, (thus cheaper), why pay more (per pound) for the 300 lb calf?

Whoa, I guess that I didn't read your first question correctly :oops: Now I've confused myself.

The reason would have to do with how much they figure they can pay (per animal) and still make money in the end. So if they figure that they can make money if they spend $450 on a 300 lb calf they will spend 1.50/cwt, where as if they figure that they can make money buying an 700 lb calf for $800 then they will spend up to 1.14/cwt.

OK, now I get it. Chuck and BC, that helped. Still, that makes it even more complicated. Now we have to figure how long we can keep the calf before selling, i.e. the optimum weight vs. dollar per pound, to make a profit. Complicated business.
 
You are playing the margin....between the higher priced lighter animal that you fatten up on pasture...for free, less the cost of maintaining the land and the lesser prices that the animal brings when larger. Hopefully you put enough weight on the critter and the weight/price difference (margin) is great enough for you to make a buck or two.
Been told that 750# is the peak of the slide but with prices the way they have been for the last two years it could be higher.
Big steers have been going for $100/m up here.
Just my two bits worth...asked for or not!
DMc
 
Hasbeen":3f1p8pxt said:
I've asked this before and thought about it a lot, but I can't seem to figure it out.
Why does a 300 lb. calf bring 144 per cwt. yet a 800 lb'er bring only 102.00? I see this type of price difference every week and although I realize the difference in the check is almost $400 in favor of the bigger calf, I can't figure why the difference in price-per-pound is so large. Can anyone explain it so that a dummy can understand?

The cost of gain is much more favorable to the feeder on a 300 lb calf than a 800 lb calf. I'm not a feeding authority--perhaps one will weigh in here--but adding a lb of gain to a 3 wt calf takes a lot less corn than adding a lb to an 8.
Clear as mud??? :lol:
 
john250":hz272kwv said:
Hasbeen":hz272kwv said:
I've asked this before and thought about it a lot, but I can't seem to figure it out.
Why does a 300 lb. calf bring 144 per cwt. yet a 800 lb'er bring only 102.00? I see this type of price difference every week and although I realize the difference in the check is almost $400 in favor of the bigger calf, I can't figure why the difference in price-per-pound is so large. Can anyone explain it so that a dummy can understand?

The cost of gain is much more favorable to the feeder on a 300 lb calf than a 800 lb calf. I'm not a feeding authority--perhaps one will weigh in here--but adding a lb of gain to a 3 wt calf takes a lot less corn than adding a lb to an 8.
Clear as mud??? :lol:

What John said.

Gain efficiency is greater at the lower weighs.
 
You may also want to consider the cost of freight on a per head basis. At three dollars per mile on a 50,000 lb load the cost per head for 800 pound versus 300 lb animals is pretty high.
 
Hasbeen":2rq2qkh4 said:
OK, now I get it. Chuck and BC, that helped. Still, that makes it even more complicated. Now we have to figure how long we can keep the calf before selling, i.e. the optimum weight vs. dollar per pound, to make a profit. Complicated business.

Who said it was simple?

You need to have a good knowledge of where the markets are, and sell your calves to your advantage.

There are many other variables, however. Example: If you spring calve, you need to sell the calves with enough time for your cows to get back condition before the winter.

Not to mention things you can't control like drought, etc.

IMO, I have a "window" of time to sell calves. From when they are 4-5 months old until they are 7-8 months old. I start doing my homework on the markets when the calves are a month or two old.
 
cypressfarms":3hn4tmm6 said:
Hasbeen":3hn4tmm6 said:
OK, now I get it. Chuck and BC, that helped. Still, that makes it even more complicated. Now we have to figure how long we can keep the calf before selling, i.e. the optimum weight vs. dollar per pound, to make a profit. Complicated business.

Who said it was simple?

You need to have a good knowledge of where the markets are, and sell your calves to your advantage.

There are many other variables, however. Example: If you spring calve, you need to sell the calves with enough time for your cows to get back condition before the winter.

Not to mention things you can't control like drought, etc.

IMO, I have a "window" of time to sell calves. From when they are 4-5 months old until they are 7-8 months old. I start doing my homework on the markets when the calves are a month or two old.

This has been an old arguement on the board for years of selling 400 versus 600 pound calfs.
 
Hasbeen":12xqevon said:
I've asked this before and thought about it a lot, but I can't seem to figure it out. Here is the results of Tuesday's Auction at the London, Ky. sales.

Feeder Steers: Feeder Heifers:
Medium and Large 1: Medium and Large 1-2:
200-300 144.00 300-400 119.00-125.00
300-400 118.00-130.00 400-500 107.00-112.00
400-500 115.00-128.00 500-600 95.00-101.00
500-600 105.00-112.00
600-700 95.00- 98.00
700-800 95.00-102.00

Why does a 300 lb. calf bring 144 per cwt. yet a 800 lb'er bring only 102.00? I see this type of price difference every week and although I realize the difference in the check is almost $400 in favor of the bigger calf, I can't figure why the difference in price-per-pound is so large. Can anyone explain it so that a dummy can understand?


Everything is cheaper in a bigger package, peanut butter, milk, Pickles and Cattle. ;-) Just check out a Sams wholesale club.
 
MY NEIGHBOUR BUYS 150 FEEDER STEERS A YEAR GENERALLY ABOUT 450 LBS. HE FEEDS GOOD HAY ALL WINTER VERY LITTLE GRAIN (ONLY ON BITTERLY COLD DAYS ) THEN HE PUTS THEM IN THE PASTURE ALL SUMMER HE WANTS THEM ABOUT 850-- 900 (THIS YEAR HE GOT 1.14 CANADIAN) HE DOESNT WANT TO BUY MY CALVES BECAUSE THEY GROW TOO FAST. IF HE PUTS ANOTHER 50 100 LBS HE GETS LESS / POUND --ITS A COMPLICATED BUSINESS ;WE SEEM TO BE DICTATED TO BY THOSE CORP. THAT ARE FARMING THE FARMER

CARL
 

Latest posts

Top