Posted 1/9/2011 19:28 (#1537674 - in reply to #1537331) Subject: RE: This fat deal going higher,
Nebraska
We were figuring 2 breakevens last week buying 700# and 800# cattle. The cost of feeder cattle here in NE is so high right now, I think we figured 800#'s at $120/cwt with shipping to the yard. We can't come close to the 55 cent cost of gain that Markwright is talking about. Our cost of gain is near 85 cents/lb figuring a conservative 3.4 rate of gain, only 1/2 percent death loss and 6% interest. I thnk it figured on the 800#'s about a $21 profit if you can get $108 for the fats. That's a lot of risk for not much money. Got to have 50 head with lots of money in them to make $1000. That's a lot of if's.
This fat deal going higher,
