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