Cattle Krush has a great new feature just released this month. If you are looking to track the profitability on your current lots on feed then "My Lots" will be exactly what you need. "My Lots" projects when you current cattle on feed will hit their target finish weight and pulls that month's Live Future Price. With this tool, producers can now set profit goals on each lot, and receive a text/email when goals have been reached. Our goal with this tool is to provide a pulse on the markets as they relate to your operation so you can capture those small moments to lock in a profit or provide the insights you need to look into your financial options.
For more information or would like to try My Lots, visit www.cattlekrush.com
By Russ Euken, ISU Extension beef program specialist, and Lee Schulz, ISU Extension livestock economist
Cattle producers face a great deal of risk, not only in production but also in pricing. The last couple of months have served as a reminder of the need for price risk management in a cattle marketing plan. Price risk management, although related to marketing, has a different goal. Managing price risk is not the same as getting the highest market price.
Cattle Finishing Breakevens
Erik R. Loe, PhD
Consulting Nutritionist - Midwest PMS
I calculate finishing cattle breakevens for low and high performing steers and heifers for multiple incoming body weights. This allows cattle feeders to get an idea of the difference in purchase price that can be paid for cattle of differing genetic potential or differing production systems. The assumptions that are made in these breakeven calculations may differ from how your specific feedlot operates or your preference in feeding cattle. The goal of these breakevens is to give a reference to feeder cattle buyers based on the set performance, days on feed, out body weight, and cost of gain. It is always more accurate to use your own operations feed costs, yardage, and past performance when projecting cattle.
The feeder price is referenced from the AMS South Dakota Weekly Summary.
This morning, I had an opportunity to join Dane Kuper, of St. Ansgar, Iowa, as he fed his morning rations. Dane is Performance Beef's first customer. He has been using Performance Beef since December 2015. Dane travels for his day job and has found tremendous benefit from using Performance Beef on his operation. Managing his hired hands has never been easier with the cloud based connectivity to his feedlot data. He can now recieve bunk scores from his employee first thing in the morning and adjust his rations from anywhere he is traveling.
We are both excited for the future of the Performance Beef platform. Thanks Dane for a great Sunday morning.
Today’s blog comes from the success of a midwest cattle feeder while purchasing cattle for his feedlot at a recent cattle auction. Keep in mind that this individual had just went through one of the most financially stressful years in feeding cattle of 2015. Traditionally this feeder does some rough calculations on what profile of cattle he wants to buy the night before the auction, such as 8 weight steers and 7 weight steers. Generally, he looks to bid on cattle that he likes to feed based on performance.
“I would go the the auction and know what I was going to buy and generally once the cattle I wanted walked in I would buy them. Often times going over the price I set and it really would not matter if they were heavier. The problem was I was buying cattle at a loss. I had no way to adjust my calculations quickly if the LC futures market was up or down that day I was in the ring. At the auction I wouldn’t know whether I should be bidding for heavier or lighter cattle. Cattle auctions move at such a fast pace that you really don’t have time to adjust. I would just listen to my gut and go”