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Selling Calves on a Slide
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<blockquote data-quote="somn" data-source="post: 557209" data-attributes="member: 3721"><p>I'm going to assume you are new to the business of buying and selling cattle but I will try to explain here goes. The seller was paid $16.08 more for 24# more beef. </p><p></p><p>$16.08 / 24 = $.67</p><p></p><p> With the current prices for feed the cow calf man has done me the feedlot owner a favor by having heavy calves selling on the slide. I can buy the pounds of cattle cheaper than I can put them on. Now unless the cow calf man has a lower cost of gain than $.67 he has not come out ahead he has lost profit. But every cow calf mans cost of gain is differnet so who knows who really comes out ahead but with your example $.67 is the breakeven number.</p></blockquote><p></p>
[QUOTE="somn, post: 557209, member: 3721"] I'm going to assume you are new to the business of buying and selling cattle but I will try to explain here goes. The seller was paid $16.08 more for 24# more beef. $16.08 / 24 = $.67 With the current prices for feed the cow calf man has done me the feedlot owner a favor by having heavy calves selling on the slide. I can buy the pounds of cattle cheaper than I can put them on. Now unless the cow calf man has a lower cost of gain than $.67 he has not come out ahead he has lost profit. But every cow calf mans cost of gain is differnet so who knows who really comes out ahead but with your example $.67 is the breakeven number. [/QUOTE]
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