Cattle Crunch

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

  1. April 2013 Cattle $130.60

    Oct or Nov 2012 Feeders $152.00

    Dec 2012 Corn $5.49


    $150 Head Profit :confused:


    The title should be Cattle Crush but for some reason I can't change it or delete it.
     
  2. BUMP
     
  3. 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
     
  4. stoic

    stoic

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

    TraDaToR

    Todays CME Livestock report covers it.
     
  6. stoic

    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

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

    emg


    doesn't account for yardage, HAY, and other nutrients. most feedyards feed 65-70% corn in their rations
     
  9. 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