LAA Your numbers are not what they are here. 500-600 steers are bringing $1.50-60 here. You will have over that by the time you get them in the yard. Then the cost of production of corn is MY cost not the board price. So what the market price is does not reduce my costs. Also looking at the futures market, cattle are not at $1.16 when current 5-6 weight cattle are ready for market. The price is more $1.05.
Also there is NO way you can gain cattle for $48 a hundred. It is more like $85-95 right now. I figure ALL cost not just the corn.
The cattle going in the yards right now are showing a $60 profit IF they do well. So that is not much on a $1500 dollar animal.
In the last twelve months there has been a ton of money lost on finishing cattle. We have don alright but we did not buy any of the really high priced feeders before that. I know of several lots of cattle that lost $300 per head in the last six months. One fellow put 8 weight cattle in the yard and when he sold them he got $30 less per head then what he gave for the calves. So he lost the feed and yardage.
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