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# Cattle Crunch

Discussion in 'Commodity Futures' started by dafeeder, Nov 22, 2011.

1. ### dafeeder

April 2013 Cattle \$130.60

Oct or Nov 2012 Feeders \$152.00

Dec 2012 Corn \$5.49

The title should be Cattle Crush but for some reason I can't change it or delete it.

BUMP

4. ### ogarbitrage

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

5. ### stoic

I'm unable to duplicate that value. Would you care to elaborate on your math, number of contracts, etc....

Todays CME Livestock report covers it.

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7. ### stoic

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

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.

8. ### dafeeder

See dat of original thread. 11-22-11 10:20 PM

9. ### emg

doesn't account for yardage, HAY, and other nutrients. most feedyards feed 65-70% corn in their rations

10. ### dafeeder

Wouldn't the corn be included in the 3 corn contracts? Last time I checked there was no yardage charged at the CME, LOL. If this cattle crush was put on the date of posting, a person would be up about \$6,000 or \$23 per head.

#10     Jan 22, 2012
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