All it takes is one sick pull and the margin gets real thin. If one dies you are really peckered.TennesseeTuxedo":1gj8scbj said:If you have the pockets and stomach for it I suppose.
Stocker Steve":w3q84jcp said:This market is dropping so fast that the Beef mag numbers are a joke. They are soooo out dated.
The question is still valid - - why and when would you retain cattle in a declining market?
True Grit Farms":1s49i2ng said:Stocker Steve":1s49i2ng said:This market is dropping so fast that the Beef mag numbers are a joke. They are soooo out dated.
The question is still valid - - why and when would you retain cattle in a declining market?
I feel it's a good gamble at these prices. Hopefully time is on your side, how much lower will or can the market go?
I don't know about construction but I'm involved in the other two. It's quite doable. Both multi unit residential and fuel stations have been very good to us.RanchMan90":3h9jfg2a said:The farm/cattle folks I know that have diversified into other investment are focusing their time there. Construction, rental properties, franchises, ect.
What size of hedge fund would these other investments take? I'm sure the ROI is looking much better right now
js1234":3b33al22 said:I don't know about construction but I'm involved in the other two. It's quite doable. Both multi unit residential and fuel stations have been very good to us. I would agree, from first hand knowledge, the ROI is more attractive right this second on really good apartments than feeding cattle.RanchMan90":3b33al22 said:The farm/cattle folks I know that have diversified into other investment are focusing their time there. Construction, rental properties, franchises, ect.
What size of hedge fund would these other investments take? I'm sure the ROI is looking much better right now
However, there is always money to be made in cattle.
That said, I've put an awful lot of cattle on feed as of late, most of which will make money. Cow/calf guys are running to pull the panic button left and right. The market is the market but I bought 1,200 calves off one deal last week, and hedged a profit. The owners were astute cattlemen and cash solid as could be. Just were too busy watching the sky fall to worry about the next guy in the chain capturing the profit.
I'll buy more calves in the next 30 days than I've ever purchased.
Brute 23":3rxga5lp said:I have been weaning calves and putting them on grass. We are flush with grass and there is not much price difference from #550-#750.
They'd feed for 70.Dave":36bzn5te said:I think the answer is yes. Last week I sold the open heifers. Six good black heifers that were 50 pounds up or down of 1,000 pounds. I got 70-80 cents for them. So what, 100-120 days in the lot to finish them at 1,400 pounds? February fats are 99 cents today. You can hedge them for more money than they cost to buy. Then there is the cost of gain. Feed is down. It sure looks like it would work. it doesn't work for 6 head but I think it would sure work if you put together a pen full.