Steer Prices

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Bullbuyer

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Southern West Virginia
Would someone please enlighten me as to how people plan on making money on these 300# steers that are selling at and above $170/cwt ??? Not to mention the 300# heifers at $150/cwt.
Just wondering what the game plan is, I must be missing something. I'll stick with big bulls, cow/calf pairs and springers !
 
300# X $1.70 = $510
1200 # (target wt.) - 300# = 900# (Needed gain)
900# X $.48 (COG) = $432
$510 + $432 = $942 = Total Cost

744# (carcass) X $1.40 = $1,041.6 (Income)
OR..1200# X $.90 = $1,080

$1041.6 - $942 = $99.6 = Net Profit
$1080 - $942 = $138 = Net Profit

Looks good on paper doesn't it. :lol:
 
Sort of like ol' Wile E. Coyote on the Saturday morning cartoons, it always worked on the drawing board. I guess I'm just pessimistic about the whole process. Knowing my luck if I tried this I'd lose a calf or two and get a couple of fence jumpers and that would pretty much eliminate any profit !!
 
bullbuyer":1xk7wc58 said:
Just wondering what the game plan is, I must be missing something. I'll stick with big bulls, cow/calf pairs and springers !
Click to expand...

This is the year that I get my feet wet in the cattle business, and I'd been planning (since last year) on buying some feeder steers in mid March to keep through the fall...

Not gonna happen. Not with prices like these..

I'm thinking that what I'm gonna do is use spring and summer to really build up my facilities, do more 'homework' on raising cattle, make more local cattlemen friends, and buy plenty of hay before it even has a chance to get scarce... I'm also only gonna brushhog my pastures once in early summer, so that by the time fall rolls around, we'll be about knee high in good fescue.. Then, I'll drop in some spring calving heifers.. :shock:

Spring calving heifers are a dangerous way for a noob to get into the cattle business, I know.. But the higher steer prices go, the lighter the steers I'd be looking for.. And, the lighter the steers, the better the chance that I'd lose them to illness, injury, or newbie fencing.. :lol:

At least with springers, you have a *chance* at making most of your money back..

(Lord help the heifers I get a hold of, though.. :lol: It could get ugly.. :help: )
 

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