per lb prices

[Shanghai]

Some figure 10-20 a head profit
On several thousand they can make it work
For me on 1 load I coundnt make it work and didn't have the resources or the guts to go bigger

 

[HDRider]

Margins are tighter than that for lots of cattle but the volume of cattle is how they make it work

I disagree. If you are losing money on cattle then having more volume simply means you are losing more money. This is what runs many out of the stocker business in one bad cycle.

I think what you mean to say is its the repetition of volume that makes it work. If you sell on a reduced market you are able to buy more cattle at a cheaper price so you have replaced less cattle with more and essentially what you are doing is using the number of cattle as a measure of wealth rather than using the dollar. These down turns scare many off but its these dips that set the stage for the best profit for those who stay in the game.

Jo
I'd suggest volume would help to spread fixed and sunk cost.

 

[Calhoun Farm]

I'm getting out of stockers for awhile, but I normally kept them 6months and avg around 100 to 250 per head profit. I didn't feed a lot of grain, just enough to keep them used to me. My main cost this last go round was medicine, I brought in a lot of disease.

 

[tamarack]

It also depends when they are going to finish if a 1000lb is going to finish in summer for the bbq season and a 800lb finish in late fall just depends what the feeders have locked in the prices at this time.

 

[Stocker Steve]

The difference in price is how much some one figures they can put the weight on for. But if you were to look at the difference in actual dollars between a 500 pounder and a 850 pounder. A 500 pound steer at $1.90 is $950. The same steer at 850 pounds at $1.45 cost $1,232. 50. So the question is can you add that 350 pounds for $282.50 (80 cents per pound of gain) and still make a profit? Obviously some people can, mostly on pasture.

In theory on average. Often order buyers only have orders for certain sizes, like 5 wts.. The rest get purchased by locals at a lower price. I used to specialize in light ones that most did not want - - but this hot market has driven some more folks into this. Little pee wees are going for $800 to $900 each...
Feedlots really really want cattle right now - - so yearling value of gain here has been running about 65 cents per pound. Not very attractive if you own the land and capture all your costs.
Here is an interesting choice for your pasture -- buy a 5 wt. steer for $1100, or buy an open 1000# heiferette for $1030, or buy a heavy bred short term cow for $1250?

 

[ibetyamissedme]

The difference in price is how much some one figures they can put the weight on for. Of course in this discussion a 1,000 pounder is an odd ball. Too small to sell as a slaughter steer and too big to fit the desires of most feedlots. But if you were to look at the difference in actual dollars between a 500 pounder and a 850 pounder. A 500 pound steer at $1.90 is $950. The same steer at 850 pounds at $1.45 cost $1,232. 50. So the question is can you add that 350 pounds for $282.50 (80 cents per pound of gain) and still make a profit? Obviously some people can, mostly on pasture.

That's if those prices hold while you are putting that 350 pounds on them. It's a risk that the prices could fall right?

You won't last long in this business operating like that branguscowgirl.

 

[Stocker Steve]

Margins are tighter than that for lots of cattle but the volume of cattle is how they make it work

I disagree. If you are losing money on cattle then having more volume simply means you are losing more money.

- I agree with the disagree ;-)
- Sell/buy operators move around between weights, and even move between classes of cattle. Right now 450 to 550# feeders are hot - - so you can buy heavy feeders or cows or hogs if the 5 the wts don't work for you.