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western iowa,by Denison | I wonder if the recent down is done-noticed the feeder board bottom and reversed and closed higher-well anyhow now having the younger generation involved in feeding cattle we tried to buy a cheap put out on next years fats-400# heifers just take a long time to get fat on (free cornsilage)except Adam will pay $60 a ton -in the morning 2014 $120 puts were .80cents-we put a order in at .50
Now i'm wondering if I should just go a little higher-say 124 put for $2-it would cost about $25 a head to put a $122 floor on the fats?
My personal feeling is that we just sit back and wait until things calm down,but on the other hand it would be nice to be worry free-with a bottom set?
Just doing some review of prices this am as I could not sleep since 2am-It will be awful hard to sell those fats above $140 and could easily see cattle at a $1.20 or less-I know a lotof consumers that have told me that at the current price of beef they have been really cautious on there meet buying?
Anyone have any ideas or thoughts-it is Adams first 50 head-to feed out,what advice can you give him-he has a calf buyer out west that has done a excellant job buying the feeders for him,now we have to do a good job feeding them and marketing them.
As close as I can figure there is a $1.25 breakeven on the cattle-give or take $3 one way or the other-$1.22 would be the cheapest and $1.28 would be the highest break evan,all ideas welcomed- even Markwrights | |
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back to basics-feeding cattle -protecting your bottom line
