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western iowa,by Denison | Back somewhere in bad times-I lost more then ever-started using futures to contract fats farther out-like a year-simple contract and getting a education
Had contracted some feeders that just never missed a beat-using local feed man's projections and cattle mostly on grower ration-anyhow the cattle gained like a house on fire-oh man was the buyer not happy-but deal is a deal-a no spec contract -the 80 head took 3 trucks not two-go back the next year and packer's boss says we need a spec contract-I told the buyer to call his boss-Tell him I will deliver the cattle and any weight over 1500# he can have for free- that pretty well ended any question from his boss-and we have been doing business since-we still contract some, and use puts for protection on the ones not contracted -I have 8-10 months to set the price off the board-have been doing more cash sales the last 5 years.
This market today caught me with very few hedged cattle-2 puts on 500 head is not going to far-hopeful that the fat market rebounds-with box beef at todays price fats should be at $120 plus live-historically cattle carcass's get lighter till August and do not yield as well-most of the calf feed cattle are cleaned up in Iowa-about 30 days ahead of normal .
Good Luck | |
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corbitt wall-worth a listen-my voice mail is full-Co-op is closed
