Posted by John in La on April 18, 2015 at 19:44:01 from (96.33.136.54):
Caught the tail end of a registered Angus bull sale on TV today. The prices were more than I thought they would be. 15 to 19 month old bulls were selling for $4500 to $5000. One sold for $11500.
One 14 month old bull that was from registered parents but no papers went with the bull. Was listed as registration number pending. Guy said the sire was a neighbors bull that got threw a fence and did the deed. The bull still brought $5000.
After the sale they had a piece explaining the sliding scale used on lots of cows. I have bought and sold a lot of cows over the years; but all were dairy springers; and all were sold individually. So never had any dealing with beef cows so it was a interesting topic. This is the way I understood it. Maybe JD Seller or others can confirm or elaborate. All prices used are a example and do not reflect real cattle prices.
You agree to sell me a lot of 800 lb feeders for $200 cwt. or $1600 each. Trouble is we made this deal several months in advance so we were both guessing on the final weight. When the calves ship they are really 825 lbs. But wait I am not paying you $200 cwt for that extra 25 lbs when I can put it on them for $50 cwt myself. So the agreement is really $200 cwt for the first 800 lbs and $50 cwt for anything over 800 lbs.
But since small calves sell for more per lb than medium size calves; and medium size calves sell for more per lb than large calves; they use a sliding scale. It might be $75 cwt for 500 lb calves; $50 cwt for 800 lb calves; and $25 cwt for 1100 lb'ers.
Often wondered how they dealt with these things since calf lots can be bought and sold months in advance sight unseen.
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