retaining feeders

[xbred]

if you have forage and acerage wouldn't it best to keep weaned calves untill forage became low? at what point would it not pay to keep heavy grass fed steers? i guess what i'm asking is can a load of heavy steers not interest a feed lot? it would seem to me that with the high price of corn feed lots would like a heavier animal delovered to them/ is this not the case?

 

[dun]

Based on what I've been reading the 750 range steers will be preferred over the lighter stuff. Might as well put the extra money in your pocket as long as you don;t have to buy feed.

 

[Herefordcross]

Reason lighter calves NORMALLY bring more money=
You can pack pounds on with junk feed

Reason heavier calves NORMALLY bring less money=
You have to feed them better feeds to "finish" them out

 

[Engler]

It's all relative to your cost of gain.

If a 500# is worth $1.30 a pound he's worth $650.

If we feed him for 90 days if we've got feed and sell him at 700# and he brings $1.15 a pound then he's worth $805.

Can you put on a pound of gain for $0.31 with feed, labor, drugs, death loss, interest on your money that you would have had 3 months sooner, ect for that? If so, yes it works. If not, then no, sell them off the cow.

 

[Engler]

It's all relative to your cost of gain.

If a 500# is worth $1.30 a pound he's worth $650.

If we feed him for 90 days if we've got feed and sell him at 700# and he brings $1.15 a pound then he's worth $805.

Can you put on a pound of gain on for $0.31 with feed, labor, drugs, death loss, interest on your money that you would have had 3 months sooner, ect for that? If so, yes it works. If not, then no, sell them off the cow.

As to the question of do the feed lot like them, it's like every other question in agriculture-it depends. Little cattle have more profit potential per head because you can get those cheap gains at light weights. With big cattle you can turn your lot more often. The feeder is interested in how many $$ per head space per year, not per calf.

 

[MikeC]

It's all relative to your cost of gain.

If a 500# is worth $1.30 a pound he's worth $650.

If we feed him for 90 days if we've got feed and sell him at 700# and he brings $1.15 a pound then he's worth $805.

Can you put on a pound of gain on for $0.31 with feed, labor, drugs, death loss, interest on your money that you would have had 3 months sooner, ect for that? If so, yes it works. If not, then no, sell them off the cow.

As to the question of do the feed lot like them, it's like every other question in agriculture-it depends. Little cattle have more profit potential per head because you can get those cheap gains at light weights. With big cattle you can turn your lot more often. The feeder is interested in how many $$ per head space per year, not per calf.

Good thought provoking post.

 

[somn]

It's all relative to your cost of gain.

If a 500# is worth $1.30 a pound he's worth $650.

If we feed him for 90 days if we've got feed and sell him at 700# and he brings $1.15 a pound then he's worth $805.

Can you put on a pound of gain for $0.31 with feed, labor, drugs, death loss, interest on your money that you would have had 3 months sooner, ect for that? If so, yes it works. If not, then no, sell them off the cow.

This might be more of that funny math I've seen alot of on here but in my way of doing math as long as all expenses total less than $.77 per pound go for it.

 

[Engler]

You know what, you're right. I went back to refigure it and it makes no sense and I have no idea how I figured that. However, I stand by my statements about cash flowing and everything else.

 

[Stocker Steve]

if you have forage and acerage wouldn't it best to keep weaned calves untill forage became low? at what point would it not pay to keep heavy grass fed steers?

1) Knowing your cost of gain is half of it.
2) The other half is where the selling "price cliff" is. This spring the price/pound of feeders over 600# was discounted in many cases so that you only got $40 to $50 for the last cwt.. It is pretty hard to feed cattle that price.

Usually heavies sell well this time of year. I have not looked where the price cliff is right now. Anyone know?

 

[mnmtranching]

At July 18 Feeder Auction calves coming off grass brought.

400 lb. $1.32
700 $1.15
900 $.92

These are averaged prices.

It seems to me selling at about 700 pounds would make money right now. I think the cliff now is at 750-790 weight. Seems to drop off at 800 pounds.

 

[somn]

At July 18 Feeder Auction calves coming off grass brought.

400 lb. $1.32
700 $1.15
900 $.92

These are averaged prices.

It seems to me selling at about 700 pounds would make money right now. I think the cliff now is at 750-790 weight. Seems to drop off at 800 pounds.

As a feedlot owner I would rather buy that 900# steer and buy a $100 Dec put for $3.30. Best put you could buy for that 7 weight would be a $98 Feb for $3.15.

 

[SCRUBS620]

At July 18 Feeder Auction calves coming off grass brought.

400 lb. $1.32
700 $1.15
900 $.92

These are averaged prices.

It seems to me selling at about 700 pounds would make money right now. I think the cliff now is at 750-790 weight. Seems to drop off at 800 pounds.

Could you explain how you figure this or is it just from observing selling prices?

 

[mnmtranching]

At July 18 Feeder Auction calves coming off grass brought.

400 lb. $1.32
700 $1.15
900 $.92

These are averaged prices.

It seems to me selling at about 700 pounds would make money right now. I think the cliff now is at 750-790 weight. Seems to drop off at 800 pounds.

Could you explain how you figure this or is it just from observing selling prices?

Average for calves 3-500 lbs 1.32

-------------------5-800 lbs 1.15

-------------------8 and above .92

 

[dun]

From Drovers Alert

Grain prices fuel demand for grass
Higher corn prices are here to stay through the foreseeable future, says Cattle-Fax executive vice president Randy Blach, increasing the importance of the stocker segment and offering good opportunities for operators this year.
The industry, Blach says, has experienced a major transition over the past eight months, with higher grain prices driving the trend toward growing cattle bigger before placing them into feedlots. As of July 1, Cattle-Fax estimates cattle inventories outside of feedlots were up compared with last year, although the 2007 calf crop was slightly smaller than 2006.
Blach expects feedlots to place relatively high numbers of heavy yearlings during August, September and October, with feedyard inventories growing through the rest of the year. In southern feeding areas, without easy access to distillers’ grains, heavier yearlings are likely to make up the bulk of placements, while corn-belt feedlots located closer to ethanol plants will be able to place more calves. Nevertheless, he says, the stocker market will drive demand for calves this fall.

 

[Stocker Steve]

At July 18 Feeder Auction calves coming off grass brought.

400 lb. $1.32
700 $1.15
900 $.92

These are averaged prices.

It seems to me selling at about 700 pounds would make money right now. I think the cliff now is at 750-790 weight. Seems to drop off at 800 pounds.

As a feedlot owner I would rather buy that 900# steer and buy a $100 Dec put for $3.30. Best put you could buy for that 7 weight would be a $98 Feb for $3.15.

900 to 1000# steers have been going for about $102 to $105/cwt
800 to 850# steers have been going for about $114 to $115/cwt
So you don't get much for the last 100 pounds:
(9.5*104)-(8.5*115)=988-978=$10
I would buy the heavy steer also

 

[somn]

At July 18 Feeder Auction calves coming off grass brought.

400 lb. $1.32
700 $1.15
900 $.92

These are averaged prices.

It seems to me selling at about 700 pounds would make money right now. I think the cliff now is at 750-790 weight. Seems to drop off at 800 pounds.

As a feedlot owner I would rather buy that 900# steer and buy a $100 Dec put for $3.30. Best put you could buy for that 7 weight would be a $98 Feb for $3.15.

900 to 1000# steers have been going for about $102 to $105/cwt
800 to 850# steers have been going for about $114 to $115/cwt
So you don't get much for the last 100 pounds:
(9.5*104)-(8.5*115)=988-978=$10
I would buy the heavy steer also

Where are you seeing prices that high for those weights? 6 weights are not even bringing $1.15 here.

 

[Stocker Steve]

Bagley MN last Thursday. They really wanted the 8 wts..

 

[mnmtranching]

Bagley MN last Thursday. They really wanted the 8 wts..

How are the Spring calves selling in Bagley?

 

[somn]

Bagley MN last Thursday. They really wanted the 8 wts..

Well that makes no sense whatsoever Feb $100 put costs $.67 more than a Dec $100. 500 less pounds of feed at a minimum in the heavier calf for $10 more per head calf price. Either you wrote down a figure wrong or else someone is counting on alot higher cash market in Jan than November. If that is what they are thinking they should just say the hell with feeding live cattle and just play the CME futures market. They tied up pen space for 2 extra months so they could net $50 per head less using the current marketing options. It is no wonder why some people can't make a go of it in the cattle industry.

 

[mnmtranching]

I check out tri-couty auction results weekly. They have good detailed results. http://www.cattle-hay.com

They have results for Bagley, Tri county, and Rich Prairie.

Their prices are good for feeders.