| Bigalbert2332 - 6/19/2024 20:28
On November 1 2023 the USDA said the cattle on feed # was 102% of year prior the market subsequently dropped 15 bucks a hundred for fats. Here we are mid June 2024 and we’re running 4% less than year ago on slaughter numbers. Those cattle were never there and the report was completely bogus. We had been sorting and selling fats prior to that report for 185-190. The market actually dropped to 1.69 for a week late in 2023. We sold 300 hd for 170-175 in that period. Avg weight was 1637 and 15 bucks less equates to 73,500$. I’m still pissed as you can tell. This week fats will sell for 2$ live in the north. You only get those kinds of home runs about 3 or 4 times in a lifetime. Good times.
It stung I can tell. But were these cattle unexpected? Did they fall into your lap all of a sudden and you were unable to manage your risk? The market was frothy and made it's high in nid September and closed at 181.225 on November 6th which was less than half way to the eventual low. There was more than ample time to cover them if you were concerned about it. Maybe its just me, but you should be pissed at the person gazing back at you in the mirror, since they were the one who made the decision to do nothing. Been there done that!
Take care |
The USDA can KMA
