How does the math work on this

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Really the more I think on it when you consider what a 5wt. steer is bringing right now it isn’t out of line. So will slaughter cattle catch up to feeders or are feeders going to fall back til they line up with fat cattle again? Can and will the American consumer bear to pay what beef is really worth? IMO calves aren’t high now they are fairly priced with production costs. Where do fats need to get to for balance?
 
Over the years it was thought that it would take 2-3 cull cows to buy a good replacement... with the "inflated" prices of today... which aren't really that inflated... the same formula still holds true... at $1500 for a cull cow it still takes 2-3 to buy a replacement...
So many of us... ME INCLUDED.... have done with "less" for so long, that the current prices seem out of the stratosphere... but start adding up the what it costs to operate... and realize that prices are where they should be for the comparison...
@SmokinM is right....
The one other balancing part to this equation is our much greater participation in the "world " markets... especially beef... and with things like the new world screw worm causing border shut downs, and all us "older" farmers slowing down, I think that it will keep the prices higher until there is a major economic crisis... but who knows.....things happen so fast and are influenced by so many factors....
 
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SmokinM said:
Really the more I think on it when you consider what a 5wt. steer is bringing right now it isn't out of line. So will slaughter cattle catch up to feeders or are feeders going to fall back til they line up with fat cattle again? Can and will the American consumer bear to pay what beef is really worth? IMO calves aren't high now they are fairly priced with production costs. Where do fats need to get to for balance?
Click to expand...
Fats this week at our local sale barn topped 2.39. Kalona, IA had 2.43.
That’s a little over $3,500 for a 1,450lb str.
9wt strs to weeks ago set a new record average for the week @ $2.83. That’s about $2,550. Add $550 for feed. Trucking twice, don’t let one get sick or even think about dying. And you may make a little money.
And remember that was the top last week. A lot of finished cattle traded in that $2.30 +/- last week.
The cattle feeders aren’t really making any more money than before but they sure are handling a lot more.
 

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