Replacement Heifers

[Bradford]

A post on Facebook caught my attention. A cattle broker was selling a set of open Black Boldy heifers out of F1 Brafords cows.It was a nice set of heifers, so the broker was interested in keeping them on his property after the sale, until bred and resold as bred heifers on behalf of the investor.The animals were to be offered for sale in Texas. Is the price spread between open and bred heifers of this kind, in that market, so wide as to make this a profitable proposition? What are the risks involved? The broker was asking $1570 per head

 

[Dave]

What could go wrong...... First of all I don't know that market but I have 50 some angus and angus cross heifers that are 4 to 2 months bred. They were synchronized and AI'ed to a drop dead calving ease bull and cleaned up with calving ease angus bulls and I would be tickled pink to get $1570 a head for them today. Heck I would be happy with $1570 a head and a November delivery. The broker keeping the cattle. How many will disappear before the sale? How much will he charge to feed and breed them. He is making money selling them. He will make money feeding and breeding them. If they sell for less than you have into them, he still makes money and you are left holding the bag. I don't see too many up sides to this for you. If the market were trending up, maybe. But it is trending down. The last two Superior sales had a total of 77 lots of bred heifers offered. Only 20 of those lots sold and they had a tough time getting $1500 a head.

 

[Bradford]

Thanks Dave! I have been asking the broker about how much he would charge for feeding and breeding those heifers. Also what his commission would be. The man just does not come clean. I really appreciate your scoop on this matter

 

[muleskinner]

Seems a little high on his price. I just bought a crossbred heifer out of a production sale. These heifers were guaranteed
AI bred to good easy calving bulls to calve late February. Floor price was $1500 and they all did not sell. I did not like the ones that did not sell.

 

[js1234]

Where in Texas? I think I know about this guy.

 

[js1234]

The last two Superior sales had a total of 77 lots of bred heifers offered. Only 20 of those lots sold and they had a tough time getting $1500 a head.

The Video model really never works for bred stock like it does for calves and feeders. When the lot is legit, its a good way to buy value due to this.
I do good business with Superior and am friends with many of the reps and a few of the main guys in Fort Worth and Brush. That said, it's very nearly common knowledge that many of the bred stock lots on Superior are smoke and mirrors on one side or the other.

 

[midTN_Brangusman]

Im with Dave, we buy a load or two a year of commercial heifers and breed them to sell as breds, in today's prices I think you would be doing well to get the $1570 as breds, Im sure they are nice but just doesn't pencil out.

 

[Stocker Steve]

Is the price spread between open and bred heifers of this kind, in that market, so wide as to make this a profitable proposition?

Sale barn heifer calves were about $600 here in mid September. Not many coming to market yet due to lots of grass, cheap hay, and hope for a price bounce...
No one knows what breds will be worth next year. Some are factoring down from previous prices, some are factoring up from kill cow prices, some are crossing their fingers. I think a lot of heifers will be retained this fall and then there will be a glut of breds in 2017.

 

[Stocker Steve]

AI bred to good easy calving bulls to calve late February. Floor price was $1500 and they all did not sell.

We had several sales last winter where small lot bull bred heifers went for about $1100.