Is There Some Money in Grass Cattle this Year?

Maybe, let's take a look:

Scenario #1

Bales at Huron, SD

Buy steers, medium 1 640# @ $126.75
Lock 'em in on the board for SEP 10 @ $114.65
Run on grass for 120 days @ $0.56/day
Allow $20/hd for operating costs
Sell 870# in September
Breakeven $105.71
Profit $77.56/hd less basis and commissions.

Scenario #2
Ft. Pierre, SD

Buy steers, medium 1 740# @ $122.50
Sell 968#
Breakeven $104.63
Profit $96.91/hd less basis and commissions

Scenario #3
Aberdeen, SD

Buy steers, medium 1 775# @ $119.25
Sell 931#
Breakeven $110.69
Profit $36.80/hd less basis and commissions.

After tracking this for the last couple of weeks it appears that guys may want to stay away from the heavies (>8 wt). There seems to be a heavy demand for these heavier cattle which has erased a large portion of the slide you might expect.

Judging from the cost breakevens on these examples above, guys shouldn't get into grass cattle unprotected either. This fall, I expect unprotected grass cattle will be lucky to break even.