western iowa,by Denison | runningihred - 10/4/2016 21:35
Last week I bought 3 $98.00 April live cattle puts for $3.30. That will cover the cost of the steers and feed. No yardage figured into the .95 cent breakeven on them.
Why not sell April board for $1.03 be $8.30 ahead of your $94.70 price? Gives about $91 more per head on 1100# fat calf
yardage at $.?? would be covered then(210 days@ .43.33cts yardage) actually be lot more as I figured 210 days to make them 1100# they already weigh 800#-that's 1.5# a day gain
200 head you would need to sell 5 contracts minimum-contracts are 40,000#
1100x1.03=$1133vs-options@1100x$94.7=$1041.70-purchase cost of $1040(800x$1.30)
@ 300# cost of [email protected] is $165--must have bought the feeders under $1.20???
Hard to compute when actual purchase cost? is not known and actual feed cost? is a stab in the dark!
$8.30 a 100cwt is a lot to give up on the board-from options to actual contract? Board has to go to $1.06 to get back whole
Edited by garvo 10/5/2016 07:43
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I'm having to hand feed 8 wt. yearlings from kentucky
