JD 946

[ALLFARMER]

It's good to see we're all at a level were we can
communicate respectfully.

Off to go see my girls!

[grassfarmer]

Here's another thought if you have money burning a
hole in your pocket allfarmer.
A friend of mine in Idaho who is in the cattle business
full time (over 1000 cows) has forward contracted this
years heifer calf crop as fats for next December at
$150/cwt as long as they are under 1600lb live. Now
these are reputation cattle and will qualify for a
"natural" program but none the less that's quite the
price. I believe he said he has September corn booked
at $6.50 putting cost of gain at $1.30-$1.40.

So if cattle can be contracted for this high a price for
a year from now in the US what's the potential for
Canada? The US obviously has it's feed challenges
between now and then but in western Canada we
really don't - ample feed to background calves using
a lot of forage, ample pasture for next summer and
barley to lock in at what price next fall? Even with
basis difference the price someone is prepared to
forward contract cattle at in the US for next fall would
lead me to believe the current calves are maybe way
undervalued here.
Maybe that would be a better buy than a piece of
metal that will lose a lot of it's value the moment it
drives off the dealers lot?