Southern IA | Slow learner - 3/24/2020 10:30
Fat cattle price affects the cow/ calf guys profit more then the feedlots.
When buying cattle feedlots look at the board and bid accordingly.
Feeding cattle is a margin business, I want to make $100 a head.
You tell me the board price and the price of corn and I can tell you what your calves are worth using simple math.
Packer is taking his profit out of the cow/calf guys check book.
not really cattle feeders tend to overpay for feeders and bet on the come, just like we are seeing in the feeder market the last couple days. Banker wants cash flow to make sure there is cash flow and payments get made on time. You are an anomaly filling in the demand peaks after the packer pulls from their base captive supply. Livestock has always been a boom and bust equity burner, why so much of it has gravitated towards contract feeding and assuring a bulk of the supply is available to keep processing lines supplied. |
Cattle feeders quit complaining
