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scmn | Cheap corn historically makes high priced cattle. We feed Holsteins and figure 125bu bottle to finish. When corn is $7 you have to lock your empty trailer at the sale barn or you will cone home with a load of calves because commission is higher than sell price. When corn us $3 everyone sees $3000 fat Holsteins and 0.60 COG and want in on the profits so drives feeders through the roof, and makes the day old Holstein $900.
Nobody wants to feed Holsteins art $7 corn but you can always pencil a profit with $7 corn it just gets slim. With $5 corn profit is good for cattle and for row crop. With $3 corn row croppers look to cattle to add value to their corn and jump in so with more buyers comes higher prices. Now add in a higher demand for fats makes f0r $600-$1000/hd profits for those on feed and suddenly everyone wants in so feeders jump $600-1000/hd to pencil out a $50/hd profit. This time around we are selling fat Holsteins for $3000 that we paid $150/hd for day olds last fall with $700 feed in them and are pushing way more than $1000/hd profit, thus rediculous prices for day olds stiens and feeders and those are propped up by colored cattle. | |
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Cattle Cycle... is this time different ?
