What should I do With the Steers?

[mnmtranching]

I've Wintered 50 head of my own steers. Until recently I've been feeding them my own raised feed. Corn silage, grass hay and chopped ear corn. Buying protein, mineral and salt. I still have the hay and silage but out of ear corn. They ave about 800 and will take a lot of feed to get them up to 1300. From here on I don't know if it is worthwhile to get them to market weight?

Any Thoughts?

 

[Limomike]

Do you normally consider 1300lbs market weight?

 

[mnmtranching]

Do you normally consider 1300lbs market weight?

A guess, Maybe finish a little heavier. I think 1300 would be close.

 

[2DM Limousin]

Take um to 900 and dump them. Feed to 1300 will eat up your profit My thinking exactly !

 

[Bez+]

How much for each pound of gain are you planning on spending? I do not include only feed cost here - I add in a bunch of other stuff - yardage, time, potential dead loss, farm costs, shipping and a whole raft of other things that most on this board never seem to.

How much are you planning on getting for each animal when you sell?

The difference being the profit or loss - depending on the flip of the coin sometimes.

Not everyone can sell at the top - or the bottom

Questions everyone should ask.

Your question - despite the best thought out answer will also require a good bit of luck in todays markets.

Affter all even those fancy pants economists can only give you an opinion - otherwise they would all be multi-billionaires.

Bez+

 

[HerefordSire]

I've Wintered 50 head of my own steers. Until recently I've been feeding them my own raised feed. Corn silage, grass hay and chopped ear corn. Buying protein, mineral and salt. I still have the hay and silage but out of ear corn. They ave about 800 and will take a lot of feed to get them up to 1300. From here on I don't know if it is worthwhile to get them to market weight?

Any Thoughts?

If you didn't run out of ear corn what were you going to do with 'em?

 

[Angus Cowman]

check your pm

 

[mnmtranching]

Well, I knew I would run out of ear corn, Then it would be time to punt.
I think of the possibility of one getting sick or something :shock: maybe death :help:
Yup I can feed them for less then .75 cents per pound. :cowboy: HEY :clap: maybe make another $15 per head if I get them to 1300. 8) But then there is the sick one or dead one scenario. :compute: I don't know :? maybe if I was talking 5000 head or so. But, still the fact I can't afford to buy the corn for the 50. I like to take them all the way to slaughter. Maybe gross $1050 at today's prices. Take less thought if fats were .95.

 

[cfpinz]

OTHER THAN DEATH OF A STEER YOU GOT NOTHING TO LOSE THERE IS ONLY THE UP SIDE

You must work on Wall Street!

 

[Bez+]

Well, I knew I would run out of ear corn, Then it would be time to punt.
I think of the possibility of one getting sick or something :shock: maybe death :help:
Yup I can feed them for less then .75 cents per pound. :cowboy: HEY :clap: maybe make another $15 per head if I get them to 1300. 8) But then there is the sick one or dead one scenario. :compute: I don't know :? maybe if I was talking 5000 head or so. But, still the fact I can't afford to buy the corn for the 50. I like to take them all the way to slaughter. Maybe gross $1050 at today's prices. Take less thought if fats were .95.

If you can do it for less than 75 cents a pound - all in - then I can think of at least 5 feed lots that would like to hire you.

Bez+

 

[Aaron]

mnm,

Are you selling these steers at an auction mart? I suppose, based on your lack of secured feed supplies, that your not feeding them on contract for the grid. The maximum profit on stockers nowadays is 900 lbs. After that, your feeding for someone else. I remember the good old days (exactly 8.5 years ago) when I could get $1200 for a 1200 lb fat steer. Now guys get excited if they gross $1000 on that same animal....not worth my time. If you have 50 steers at an average 800 lbs, and you max out at 900 lbs, your looking at 5000 lbs of gain. Figure out your cost of gain and how long its going to take to put on the 5000 lbs....and then look at the futures and decide if its worth your time and effort. Even if your feeding hard, your going to need another month to put that extra 100 lbs. on them.

I'm in the same boat as you, although with fewer head and my current average weight is more like 700 lbs and I am hoping I can put the last 125 lbs on during the summer as the futures don't get me very excited until late summer. :cowboy:

 

[2DM Limousin]

Thats exactly what I said, All the rest is Crystal Ball crap. Dump at 900lb and reload for the summer. Reload now while there is a break.

 

[HerefordSire]

Well, I knew I would run out of ear corn, Then it would be time to punt.
I think of the possibility of one getting sick or something :shock: maybe death :help:
Yup I can feed them for less then .75 cents per pound. :cowboy: HEY :clap: maybe make another $15 per head if I get them to 1300. 8) But then there is the sick one or dead one scenario. :compute: I don't know :? maybe if I was talking 5000 head or so. But, still the fact I can't afford to buy the corn for the 50. I like to take them all the way to slaughter. Maybe gross $1050 at today's prices. Take less thought if fats were .95.

Your risk is 100% because all of them can die, unless they are insured through feeder put contracts or normal insurance. Always know your risk / reward scenario. If you are mentally thinking you could lose one animal through death, you are screwed from the get go. Is sounds like you have calculated your estimated profit. What would your maximum profit be if you finished all steers and retailed them for freezer beef if you were able to unload quarters? For example, 50 - 5 deaths = 45 * 4 quarters = 180 quarters. 180 * 125 pounds per quarter = 22,500 pounds. 22,500 pounds * $1.90 per pound = $42,750. If you ran several nice advertisements in three large cities, and unloaded all quarters, what would be your profit?

 

[mnmtranching]

So far I've put on the weight for much less then .75 per pound. [I don't count my labor] I don't have fancy machinery, my tractors are old 560 Farmall's. I've posted pics from time to time. I don't have payments or interest. Put up all the feed [except for drought years]. I would have had plenty of the ear corn except for dry weather. You can't buy ALLthe feed and turn a profit, unless you can handle huge numbers.
And I have good functional cows that wean off good calves without creep.
As far as the cost of gain from now on? They would still be on full silage. I would fill the bunks with the silage, let them fill on it. Then top whats left with cracked corn and corn gluten. Stuff will be gone by morning then repeat. They always have green hay, they may be eating 5 pounds a day at this point.

 

[TexasBred]

OTHER THAN DEATH OF A STEER YOU GOT NOTHING TO LOSE THERE IS ONLY THE UP SIDE

You must work on Wall Street!

AND....Daddy holds the checkbook. :lol: :lol:

 

[TexasBred]

OTHER THAN DEATH OF A STEER YOU GOT NOTHING TO LOSE THERE IS ONLY THE UP SIDE

You must work on Wall Street!

NOPE DON'T WORK ON WALL STREET JUST SMART ENOUGH TO KNOW RAISING CATTLE INVOLVES MORE THAN GRASS IN FRONT OF COW BULL BEHIND COW.

EXCEPT FOR DEATH LOSS MNM HAS NOTHING TO LOSE ON THOSE CATTLE IF HE CAN FEED THEM FOR LESS THAN $.79 PER POUND OF GAIN.

mnm...get a contract today with "what" and you won't even have to worry about the market in 60-90 days.

 

[bigbull338]

since you have them at 800 now.id feed them till the 1st of march an sell them.youll make more money now.its not worth the feed an time to take emm to 1300lbs.because selling them could take sometime.

 

[cowman30]

Sounds like what is a pin hooker.

 

[Stocker Steve]

Yup I can feed them for less then .75 cents per pound. :cowboy: HEY :clap: maybe make another $15 per head if I get them to 1300. 8) But then there is the sick one or dead one scenario. :compute: I don't know :? maybe if I was talking 5000 head or so. But, still the fact I can't afford to buy the corn for the 50. I like to take them all the way to slaughter. Maybe gross $1050 at today's prices.

I was concerned when you said you planned to reduce the cow herd size and finish out your calves. Finishing profits have not been great lately...
It takes a lot of feed to go from 800 to 1300 pounds and they are way way too heavy for spring grass. I bought some corn for $3.06 recently but that may still not work for heavies. If you look at value of gain it drops off fast over 600#.

So - - catch the bounce by selling them and buying back some light weights. :cowboy: No shame in that. Just realize you will pay a premium to buy in Bagley.

 

[mnmtranching]

Yeah, I think I will liquidate in the next few weeks. You'd think some guy with some bins full of $3 corn would want to put in a few cattle. I will still be feeding at least 8 for customers beef. I'll take the best doing ones. I also have a couple black, froze ear heifers that are doing good. I've got to check when the feeder calf auctions are scheduled. Should be plenty of buyers.