Posted 5/23/2020 11:54 (#8275246 - in reply to #8274945) Subject: RE: ah great-I dont qualify for payments on cattle-basis and sold
garvo - 5/23/2020 09:04
LOL-I do not qualify-my basis contracts with priced cattle before the Jan 15th time frame and my new crop calves that are already sold between (april16th and may14th) means zero money so I guess there's another $200,000 in the pool for other cattlemen
Wow-should have used the board to hedge I guess
I do get paid on those 36hd-1602# heifers that were not contracted-and they sold $10 higher cash then my contracted ones and ring another $214 a head
Corn silage qualifier's if you have not presold it-grey aera
If you premarket they do not help-if your strictly cash you do-wonder what this does to formula cattle?
The worse part is the packer made huuugggge money off of your basis contract on top of everything else they are making. Cash cattle seem to have been $10+ up to $20+ basis and I bet your contract wasn't anywhere close to that and probably a negative. As bad as the markets have sucked hedgers and packers with contracts have been making a killing off of the positive basis for the last 5 years.
Any I say this to everybody I cannot stress this enough that risk protection needs a to be done on the board and not through a packer via contracts!!