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Re: Fat cattle results!!!


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Posted by JD Seller on February 03, 2014 at 21:29:26 from (208.126.196.144):

In Reply to: Re: Fat cattle results!!! posted by LAA on February 03, 2014 at 18:47:21:

I had the cattle pre-sold on a direct contract. They went directly to the buyer/packer not through the local sale barn. I do not use option contracts on the cattle. These are just cash sale contracts. Real similar to forward priced grain contracts.

The only difference is the cash contracts I sell on do have premiums built into them. If the cattle dress over a certain percentage I get a bonus. If the marbling is a certain thickness but not too thick I can pickup another premium.

So the contract I agreed to back last summer was lower than the current cash price. That happens sometimes but it often is the other way too.

The prices I posted about are without any premiums figured on the contracted cattle. With the premiums I will more than likely be close to the current cash price. It can take up to ten days for me to get the settlement sheets on the contracted cattle.

That is one advantage of the local sale barn. I picked up my check after lunch today. So if you need cash in a hurry the sale barn works better.

On the cash contracts you need to be able to ship in semi load lots. that is 40-45 head of fat cattle depending on their weight. At the sale barn you can sell any number you want.


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