LAA: It is more of what a difference a year makes. The real issue is not that there is not the gross money in the cattle market for fats. It is that the feeders around here are sure not in the 90 cent range or at least the calves that will work in the markets I have been selling to and our corn is not $3 either. We sold enough of our corn on rallies in June this year that our cash corn value is still over $4. We have a solid base for good corn prices next year too. We can make better money right now by NOT marketing all of our corn through the cattle.
I still do not get when your talking about being surprised by locking in the base price of fats. I have done this for over 20 years. I am not going to gamble on the market price of fats when they are ready and hoping that it "works" with the calf price you have to give. The most common type of contract we use is grade and yield contract. It has a base price. Then premiums or discounts based on the grade and yield of the cattle. We know what our cattle usually grade and yield so you can have a real good idea of what your going to receive. This leaves death loss and rate of gain as the major issues that you have to contend with not doing able to control them. There is a delivery window that is usually not hard to hit.
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Today's Featured Article - When Push Comes to Shove - by Dave Patterson. When I was a “kid” (still am to a deree) about two I guess, my parents couldn’t find me one day. They were horrified (we lived by the railroad), my mother thought the worst: "He’s been run over by a train, he’s gone forever!" Where did they find me? Perched up on the seat of the tractor. I’d probably plowed about 3000 acres (in my head anyway) by the time they found me. This is where my love for tractors started and has only gotten worse in my tender 50 yrs on this “green planet”. I’m par
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