western iowa,by Denison | Hick - 4/9/2026 10:07
That’s fine by me, you also didn’t post for a month complaining about the packer just to reveal that you did a whole bunch of packer contracts 9 months down the road.
Hick I did not complain about the packer,I posted what they could pay and the spread the fact that they have a lot of margins-if anyone knows me I have been upfront with contracting out ahead and have ate a lot of bitter pills,you keep telling me that I'm part of the problem and should go to hedging them cattle instead of contracting-so I'm trying this-I know you can manage it much better then me,I'm being upfront and showing you I'm not built to have margin call after margin call'
I have all the records of my fat cattle sales -99% of them are sold on a yield basis,have always been on the upper end of the yields with fats-have a couple neighbors that are better then mine but I do not feed the other product they feed to up their yield. I think we had that discussion on yield last year and now before I post my yield I deduct that 3/4% because you said i had to allow that pencil shrink.
I'm trying to clean up those 20 contracts on my exposure to Oct board-so far I have 6 gone-with 12 left-working right now on trying to get 2 more gone
Use to use a lot of puts on cattle-when the lrp came along it really wrecked that opportunity to insure calves reasonably.
I can and have contracted around 30% in the first couple weeks of ownership of my 4-5wt calves 1 year out-my relationship with the packers has always been that I typically would be the first one to want 1 year out on contracting that far in advance
Always surprised that there is such a spread on cash cattle,on weekly basis. Today the box beef is very close to actual beef bid-Know one knows from 1 year out where that bid will be,but a actual cme contract on the board seems like more risk on top of all the other risk
Today we are at 30% contracted-50% hedge on the board and 20% open-Thank you for your kind remarks! |
You guys backseat driving Garvo
