This Week in Cattle

There are some incredible values in the market place right now in both the cash steer and heifer markets for guys that are willing to protect their investment on a relatively static futures market.

As usual, there is pretty strong demand for 6 and low 7 weight steers that has slightly over valued cattle in this weight class.

However, heavier steers and heifers are pretty reasonably valued right now, especially for those that can put on some relatively cheap gain (<$0.70/lb.) in a backgrounding yard.

Examples:

Buy steers, medium 1, 693# @ $124.21
Lock NOV '10 at $113.90
Grass 60 days @ $0.72/day
Background 60 days @ $0.70/lb. cost of gain.
Sell: 921#
Breakeven: $111.72
Profit: $20.05/head less basis and commissions

Buy steers, medium 1, 792# @ $115.00
Lock NOV '10 at $113.90
Grass 60 days @ $0.72/day
Background 60 days @ $0.70/lb. cost of gain.
Sell: 996#
Breakeven: $107.48
Profit: $63.92/head less basis and commissions

Buy steers, medium 1, 819# @ $113.84
Lock NOV '10 at $113.90
Grass 60 days @ $0.72/day
Background 60 days @ $0.70/lb. cost of gain.
Sell: 999#
Breakeven: $108.47
Profit: $54.17/head less basis and commissions

Buy heifers, medium 1, 724# @ $114.55
Lock NOV '10 at $113.90
Grass 60 days @ $0.72/day
Background 60 days @ $0.70/lb. cost fo gain.
Sell: 928#
Breakeven: $106.58
Profit: $67.85/head less basis and commissions

Buy heifers, medium 1, 839# @ $106.05
Lock NOV '10 at $113.90
Grass 60 days @ $0.72/day
Background 60 days @ $0.70/lb. cost fo gain.
Sell: 1019#
Breakeven: $102.17
Profit: $119.52/head less basis and commissions

Buy heifers, medium 1, 896# @ $99.40
Lock NOV '10 at $113.90
Grass 60 days @ $0.72/day
Background 60 days @ $0.70/lb. cost fo gain.
Sell: 1052#
Breakeven: $98.24
Profit: $164.66/head less basis and commissions