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”
“Cattle Krush quickly became a game changer for me. I brought my iPad and connected to the auction house’s Wifi and let the software do the crunching of the numbers on each group in the ring. It was easy to enter the weight of the cattle and the cost of gain. Once I entered that info it automatically updated the dates of when the cattle are going to market and that month’s LC futures price. So, if the market moves the day i’m at the auction, it updates instantly, showing the breakeven price and the profit per head at the current bidding price.”
“I watched many cattle sell at a breakeven or decent loss. But I found an opportunity, and I was able to buy a nice large group of cattle at a nice profit. Cattle buyers around me were trying to figure out what I had on the iPad. For the first time ever at an auction, I felt like I had the advantage.”
In March of 2016 Cattle Krush launched a suite of software tools for help cattlemen become more profitable with the power of big data and analytics. We would like to thank this producer for sharing his story and hope to help many more cattlemen improve profits and gain the advantage in the auction house.
For more Information visit www.CattleKrush.com