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Galahad, Alberta | I don't know the feeder market well enough to say where the break-even is, but here are current prices from my area. 700lb calves are bringing about $600, fats are at $0.86, and grazing land is about $400 an acre. The cow/calf operator says he can't make it at these levels. The feeder can't make it with $4.00 barley and .86 fats, and I feel the land is over priced too for what it can produce.
I don't want the current market to fail, but I fear that a rebound is inevitable. What I wish would have happened was a more orderly increase in commodity prices, not this spike. Slow, methodical increases make it possible for the inefficient people to get out without losing their shirt. Spikes make for a lot of bloodletting.
Rosco | |
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Hang on to your profits
