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Anonymous

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A question for the panel. I have the possibility to contract my 650+ calves for 1.08 @ 775 for mid to late sept. this would net me(after rent,a small amont of feed, a little la200 and a few misc. things) about a 100$ per calf. I have the grass and I should be able to make the weight. When I bought them last spring I was hoping for 1.05 so I would pass my target. The question is lock in now or hold on. This is my first sale so I am leaning toward taking the sure thing. Is this a reasonable profit on a good year ?
 

la4angus

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Not knowing where you are, what kind of cattle, sex of cattle , ie steers, bulls hfrs, mixed sex, quality of cattle, condition of cattle, number of head and weighing conditions your question is taking the sure thing or holding on is hard to answer.
As far as $100.00 per head being a good profit in a good year the answer is yes it is.
Could you fill us in with more details???
 
A

Anonymous

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sorry about leaving the details out, 30 steers , 22 black,4 red,2 char and 2 a little on the homely side that the buyer will take with the rest. As far as condition I feel they are in pretty good shape. I compare them to a neighbors (some bought the same day, close to same avg wt.,also blks reds, and char x)and mine do look a little better according to him. I think so too. I really apreciate you taking the time to reply La.4( and anyone else. Thank you
 

Texan

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My concern would be in making the weight, even though I know you indicated that you're not concerned about it. If they weigh 650 now, contract for 775 in about 50+ days, that's gonna take a 2-2.5ADG to make it. In my opinion, that's a lot to ask for on August/September grass. But then, we don't know your location or what your grass is like.

I'm just trying to give you something else to think about. If your gains back off this time of year like mine do, and you just get 1# a day, it'll change your net by a sizeable amount. In fact, if you didn't figure shrink into your net, I can figure it where if your gains backed off to a pound or less and you had to give up a 4 or more on the weigh-up, that $100 net would completely disappear.

But like LA said, $100 is a good profit. If I really was confident in making the weight and if all of the weighing conditions suited me, it would be hard to get me to walk away from a contract like that.
 
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Anonymous

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Oops I appologize again,, I am in North Dakota, the buyer was out and he eyed them up at 675 herd average, my guess was 650 but he,s been in the business for 40 years and I am a rookie. The oldtimers around here claim the gain gets better up here once the grass dries up a little thru august and sept. The bunch averaged 515 whenI bought and went to pasture on May 14 after a few days of pen feeding. I did not figure shrink into the picture... They will be hauled about 10 miles to a lcal scale and shipped right away I believe. If I go with myguess of 650 and my beginning avg of 515 I put on138 lbs in69 days so far which hits 1.95/ day. The buyer wants them on sept 20. that gives me 56 days.If either the buyer guess on weight or the old timers words on late summer grass prove be right, I will make weight (if all my ciphering is right,my head is spinning) There are so many things to think about I don't see how any fulltime rancher could keep up with it. I really respect you guys that do this for a living and a little jealous
 

la4angus

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Many contract have a sliding scale, so if the cattle weigh less than expected you would get paid more per cwt. and if they weigh more than expected you would get paid less per cwt. This kind of helps balance things out. Be sure the cattle are in the condition that the contract calls for.
What part of N.D. are you in. There are many good reputable and honest order buyers in N.D..
 
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Anonymous

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La4... the slide only works one way on this contract the way I understand it..only if I come in heavy. If I come in light I get my1.08 and a licking. I am in north central ND, around Minot
 

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What is the average slide? Or does it vary with each contract?
 

Texan

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Anonymous":2c02uk83 said:
I did not figure shrink into the picture... They will be hauled about 10 miles to a lcal scale and shipped right away I believe.

Pencil shrink is what I was referring to. You can live with a 10 mile haul. If you're saying that your contract doesn't call for any shrink in addition to the haul, that's just one more reason that I would say go for it.

But, if the contract calls for a 4% on top of the haul, then you're talking about real money. In fact, shrink is usually one of your biggest per head expenses in grass cattle. With a 4% shrink, your 775# steers would have a payweight of 744#. That's $33.48/hd. off of your projected net! Big bucks in most grass cattle budgets.



certherfbeef":2c02uk83 said:
What is the average slide? Or does it vary with each contract?

Contract should spell it out. Six to 10 cents after a 10 pound window is fairly common. Buyers always want you to give them a slide. Seems like they never want to give you one!
 

la4angus

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Of course the buyers don't like to give a slide for lighter wts.I can't blame them, but I have seen many contracts that do call for a slide each way.
With this few of cattle it would be almost impossible to. Another reason for comingling program like Dun has spoken about many times


Contract should spell it out. Six to 10 cents after a 10 pound window is fairly common. Buyers always want you to give them a slide. Seems like they never want to give you one!
 
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Anonymous

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I would like to thank you folks for the info, you gave me several things to question the buyer about and I feel a little more confident in making the call now.Just in case your wondering I did verbally agree to the deal(he needed an answer) which I feel is as good as written and will sign on Friday. The old saying that nobody ever went broke taking a profit was ringing in my head. Now all I have to do is keep them alive and growing which belive it or not causes me less worry than this type of stuff. I am still curious tho...if they are coming after smalltimers like me with a descent offer, is that a sign that the feedlots are going to be begging for critters or not really. Again thank you and I will post again to let you know how it turns out. Baldy
 
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Anonymous

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now I know I was logged in this time, my handle was on the list of registered users. Obviously I am to dim to do this right
 

M Gravlee

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Easy way to tell if you are logged in is to look at the tabs at the top of the page. If you are Logged In it will say Logout. If you are not Logged In it will say Login. :nod:
 

dun

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M Gravlee":1o7ul1hg said:
Easy way to tell if you are logged in is to look at the tabs at the top of the page. If you are Logged In it will say Logout. If you are not Logged In it will say Login. :nod:

Plus at the bottom of the screen it will either tell you to log in to check your mail or if you are logged in that you have messages or not.

dun
 

la4angus

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M Gravlee":xumpruc7 said:
I learn something new every day! :)

The mail check doesn't always work. I knew it was therebut right after I read duns post, I had a PM come in and when I came back to the CT page, before
I went to my inbox I looked at the bottom of the screen and it said that I had no messages. There was one in the inboox.
 

ollie

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Anonymous":e9o1zr5a said:
A question for the panel. I have the possibility to contract my 650+ calves for 1.08 @ 775 for mid to late sept. this would net me(after rent,a small amont of feed, a little la200 and a few misc. things) about a 100$ per calf. I have the grass and I should be able to make the weight. When I bought them last spring I was hoping for 1.05 so I would pass my target. The question is lock in now or hold on. This is my first sale so I am leaning toward taking the sure thing. Is this a reasonable profit on a good year ?
If your a gambler I think I would wait unless you need the money or are running out of grass. I also don't think you will make the weight and I think that the market is a little higher than your quoted.
 

Campground Cattle

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Anonymous":3ce8zarb said:
A question for the panel. I have the possibility to contract my 650+ calves for 1.08 @ 775 for mid to late sept. this would net me(after rent,a small amont of feed, a little la200 and a few misc. things) about a 100$ per calf. I have the grass and I should be able to make the weight. When I bought them last spring I was hoping for 1.05 so I would pass my target. The question is lock in now or hold on. This is my first sale so I am leaning toward taking the sure thing. Is this a reasonable profit on a good year ?

To your reply I couldn't help you much here as I am small potatoes cattleman. Now if I could lock in that price I would jump on it, your weight gain seems a little aggresive. I just have never marketed my cattle this way, we sell mostly by private treaty or sale barn.
 

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he knows your a little green .he trying to rip you off.i would forget the contract an take the calves to salebarn .let the buyers battle it out.you wont have to worry about making weight.they should sell higher then 108.~~~~~~~~~~~~~~~Tc
 

la4angus

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Tc":1xtycic3 said:
he knows your a little green .he trying to rip you off.i would forget the contract an take the calves to salebarn .let the buyers battle it out.you wont have to worry about making weight.they should sell higher then 108.~~~~~~~~~~~~~~~Tc
That wouldn't quiet lock in a profit now, would it?
 

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