Jonescattleco
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- Jan 28, 2012
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I have a group of 90 heifers that will weigh 550-575 in April and dont know whether i should lock them in now or wait and see what this crazy market does what would you do?
Why would you gamble losing a gauranteed profit? Also you may want to look back into the history of feeder cattle prices as well, spring historically does not provide the highest markets.highgrit":u6d7kdr8 said:I would wait if it was me. Historically spring is the highest market. It's easy to gamble with other peoples money.
inbredredneck":yb4m2vc7 said:Why would you gamble losing a gauranteed profit? Also you may want to look back into the history of feeder cattle prices as well, spring historically does not provide the highest markets.highgrit":yb4m2vc7 said:I would wait if it was me. Historically spring is the highest market. It's easy to gamble with other peoples money.
jedstivers":1xcibr76 said:I'd get a floor under then, it will cost a little to do that but you know your bottom side and still have the top side to take if it goes up.
No I am not kidding at all.larryshoat":2kplnn49 said:inbredredneck":2kplnn49 said:Why would you gamble losing a gauranteed profit? Also you may want to look back into the history of feeder cattle prices as well, spring historically does not provide the highest markets.highgrit":2kplnn49 said:I would wait if it was me. Historically spring is the highest market. It's easy to gamble with other peoples money.
You're kidding, right?
Larry
+1larryshoat":3vs1aojg said:jedstivers":3vs1aojg said:I'd get a floor under then, it will cost a little to do that but you know your bottom side and still have the top side to take if it goes up.
That's good advice Jed, it will cost a little but as crazy as everything has been will make sleeping at night a lot easier.
Larry
I think it's a put that you will buy, ask a broker. I'm running someone else's calves now, if I ever buy my own I'll buy a floor under them when I buy them.Jonescattleco":3f0fktf0 said:Jed how exactly does that work. In the past i have always waited til a week or two before im ready to sell and contact my buyers but with the market as crazy as it is im not sure if thats the best route to take this year
Thats right Jed. An April $156 will cost right at $3.37 cwt.jedstivers":rv5btt4l said:I think it's a put that you will buy, ask a broker. I'm running someone else's calves now, if I ever buy my own I'll buy a floor under them when I buy them.Jonescattleco":rv5btt4l said:Jed how exactly does that work. In the past i have always waited til a week or two before im ready to sell and contact my buyers but with the market as crazy as it is im not sure if thats the best route to take this year
Expires the last Thursday of the contract month.Jalopy":2ff4ee0b said:I haven't used puts for a while but if you have an April put won't it expire in mid March?
There isn't one.Jalopy":2ff4ee0b said:Maybe look at a buying June put.