Posted 6/29/2020 22:46 (#8344373 - in reply to #8343928) Subject: RE: A way to clean the table off
Mike, a similar scenario occurred in the mid 80's. Cog was in low 60's, fats dropped to low 60's and big feeders dropped to low 50's. Remember it well as I had a lot of big steers coming off wheat pasture. At first, feeding them didn't make sense as cog was as high as could sell as fats. Finally realized that rolling up price of the 800 lb going into yard by 10+ cents is where profit would come from. Shipped steers to feedyard and rest is history. They actually weighed 900 going in and final cog was 2 cents under contracted sale price, both of which added a little more to bottom line. Think a similar scenario occurred in 1996 but didn't have any then. Been my observation that whenever feeders go near or under fats and cog, this is usually a good time to feed big cattle. Usually when things get to this point, lots of cattle folks and bankers have already puked up their toenails.