Cattle Crunch
- Thread starter dafeeder
- Start date
Quote from dafeeder:
April 2013 Cattle $130.60
Oct or Nov 2012 Feeders $152.00
Dec 2012 Corn $5.49
$150 Head Profit
The title should be Cattle Crush but for some reason I can't change it or delete it.
Using 3 corn, 4 feeders, and 8 live...
J13 live cattle: 1.323
X12 feeders 1.576
Z12 corn 5.5025
I get .08/lb live cattle profit
Quote from dafeeder:
April 2013 Cattle $130.60
Oct or Nov 2012 Feeders $152.00
Dec 2012 Corn $5.49
$150 Head Profit
The title should be Cattle Crush but for some reason I can't change it or delete it.
I'm unable to duplicate that value. Would you care to elaborate on your math, number of contracts, etc....
I got the same value as ogarbitrage.....or in my sheet it's calculated as $8.01 per cwt. (LC)
if looked at this way:
Input:
Feeders @ 1.5760 x 50,000 x 4 = $315,200.00
Corn @ 5.5025 x 5,000 x 3 = $82,537.50
Total input = $397,737.50
Live Cattle @ 1.3230 x 40,000 x 8 = $423,360.00
Product less input = $25,622.50
If we assume that each Feeder contract covers about 65 head (as stated in the PDF link) 4 FC = about 260 head.
A GFM of $25,622.50 divided by 260 head = $98.55 per head
From that the Feedlot operator would deduct a death rate that averages about 2%, Labor, Vet costs, and mis. overhead per head to asses overall profitability.
if looked at this way:
Input:
Feeders @ 1.5760 x 50,000 x 4 = $315,200.00
Corn @ 5.5025 x 5,000 x 3 = $82,537.50
Total input = $397,737.50
Live Cattle @ 1.3230 x 40,000 x 8 = $423,360.00
Product less input = $25,622.50
If we assume that each Feeder contract covers about 65 head (as stated in the PDF link) 4 FC = about 260 head.
A GFM of $25,622.50 divided by 260 head = $98.55 per head
From that the Feedlot operator would deduct a death rate that averages about 2%, Labor, Vet costs, and mis. overhead per head to asses overall profitability.