Western Feedlots

[smcgrath76]

Good point. It comes down to what you make per pound of gain. Cheap calves and a reasonable potential profit means less dollars out. High priced calves means more risk. I just wonder for my situation where I usually sell the majority of steers in November and keep over heifers and dink steers till February March. We haven't kept everything over for a number of years as there was no money in it. I need at least $0.85 per lb of gain to value add my grain and pay for yardage. I am cautious feeding into a down trend of the cycle but if some smaller guys can make it work then it may fill a void left by the feedlot closures. Back in the day barley was worth **** all unless it was malt and a lot of grain farmers finished their own calves or bought weaners to finish and add value to their grain. At least that was how it was here in NW sask. Now everyone grows wheat and canola and stuffed barley. I always thought it's quite something that we raise cattle, grow feed grains, and ship it all out to southern Alberta to be fed by someone else. Economy of scale and efficiency I guess. Something to be said for expertise.

I also think feeding into this downtrend is very worrisome, barring some good hedging strategy. I certainly wouldn't venture it without some price protection. As far as filling a void, we are still way overbuilt on feedlot capacity given the current cow herd size in this country.

[WiltonRanch]

I also think feeding into this downtrend is very worrisome, barring some good hedging strategy. I certainly wouldn't venture it without some price protection. As far as filling a void, we are still way overbuilt on feedlot capacity given the current cow herd size in this country.

Yes overbuilt. It's a wonder us feeders don't come north or is cog better down there still?
Looking at current prices I still don't want to celebrate all my calves birthday here. Unless things change a bunch I think we will market the heavier end steers off the cow, cut out breeding quality heifers, and background the rest for 120 days or as long as I can keep my lunch. Markets are gonna be volatile.

[perfecho]

I could live with the downturn....if my expenses downturned as well.....but that ain't happening!

[grassfarmer]

Cattle feed must be down on the year surely? what 30%, 50% down? That's got to play into our strategies surely?

[perfecho]

Some feed is...however I was alluding more to Insurance, taxes, fuel....and especially fuel, being pillaged right now...about %30-40 more than it should be....but people whine about the carbon tax....