Fall prices looking forward...

[tweaker101]

I'm just send this out and see what comes back, I was thinking of backgrounding this winter and was kind of curious of what the people on agri-ville would have to say about prices and the methods that they use in backgrounding their animals. Any information would be be greatly appreciated.

[smcgrath76]

I think it is better to custom background
this winter. We usually background our
calves and have lots of feed, but are
planning to sell early in the new year.
I think it is hard to pencil an $800 4
weight with $4 barley and all the market
risk that is ongoing right now. There is
not a lot of extra cash to be gained out
of that calf.

[15444]

We just sold our steers today off the farm. First time selling calves in 10 years. I'm not crazy enough to hold onto them this year. Late April-Early May calves, Herefords, 500 lb average at $1.55

I just watched calves go nuts on Saturday at auction. Straight Simmie steers, 714 lb average, $1.4550/lb. Seen one batch of Char calves just under $1100 a piece. Lots of $800 and $900 calves. Had to be a pretty sad calf to be under $700.

Yet the long yearlings in the same sale were selling around the thousand mark.

I sure don't want the risk.

[grassfarmer]

Maybe they will be a lot higher in the spring as scarcity is driving the price up now? We sold a few odds and ends in Feb for $1.67 at 550lbs. This time last year 5 weights were topping about $1.36 about 30 cents below where they are now so why can't they be 30 cents higher again next Feb? Not saying the will be, and there is risk holding versus selling now.

[perfecho]

Pending how the debt crisis is dealt with.......if inflation kicks in so payback is with a lessor valued dollar, the sky is the limit, but if the piper has no money, they'll all be eating chicken and pork. Don't forget, we have a long ways still to go if you look where cattle prices were in 2000 and where the cost of most other things has gone to since then. (Gold)

[tweaker101]

The thought had crossed my mind that I was loosing it, but then on the other hand maybe the prices will hold on? and this year we have a large surplus of feed to use.So I maybe I should look on Kijji for a crystal ball...lol

[farmers_son]

For Albertans, you can lock in a floor price for the backgrounded calves.

For example you could lock in a floor price of $1.34 in mid March 2012. It would cost you $3.81 cwt based on an 850 pound calf. $3.81*8.5=$32.38 for each calf insured. If 850 steers are less than that next March the insurance pays you the difference. If prices are higher the insurance does not pay out but you get the higher sale price.

Yes there is a cost but it covers all your down side price risk from the insured price and below.

This program is not available in the rest of the country yet but it is coming.

And yes barley is high but that is already figured into the price of calves so it makes no difference. There is a lot of feed around, especially roughage, that may be hard to sell so why not feed it to a calf? You can cover your price risk, do something with your roughage and if prices go up by March 2012 you pocket the extra money yourself.

[tweaker101]

Thanks for the input FS, thats what I was thinking just a little unsure of the ideas...but with a little luck it should be okay.

[rkaiser]

It's not always about luck fellas. The feedlots are buying calves at these prices are they not. Are every one of them feeling lucky? Could it be that things are simply getting better all around???? LOL

[wlc]

FS How do you get access to the Alta
schedule of available prices for future
price supports

[farmers_son]

Go to the AFSC website www.afsc.ca

Bottom of page Quick Links click on Livestock Premiums and Settlement Indices

If you have trouble Phone: 1-877-899-AFSC (2372)

[kato]

Hubby was at the auction mart trying to buy some light feeders yesterday, and he came home with an empty trailer. They've just gone nuts in there. He said $600 dollars wouldn't likely buy one that was half dead. Without some kind of insurance to cover the risk, it's pretty scarey to be putting out $2.00 a pound for little calves. If we were in Alberta we'd sure be checking out the plan you've got there. But since we're in Manitoba, we're on our own on this one.

We're going to sit it out and not join the mayhem for now. He'll still go and keep an eye on things, but for the immediate future, we're thinking marketing some of our calves off the cow would be a better use of our time.

[tweaker101]

No kidding I've been watching the prices lately like a nervous nancy, but how long will they stay up? is the question to be answered. It sure would be nice if the province of Sask would do like Alberta with the insurance program.

[wlc]

Alta. Insurance
Mar. 850 wt coverage is 134.00/cwt minus 3.15 premium .This won't cover a
2.00/cwt calf