Fridays closing markets

IaGary · Nov 7, 2015

Corn ended up the day a penny lower at 3.73 per bushel

Soybeans ended 2 cents lower at 8.71

Cattle came off the morning lows up .85 to end at 134.85

And hogs down .65 to end at 54.85.

No more markets till Mondays over night trade.

Spook · Nov 7, 2015

(quoted from post at 06:23:05 11/07/15) Corn ended up the day a penny lower at 3.73 per bushel

Soybeans ended 2 cents lower at 8.71

Cattle came off the morning lows up .85 to end at 134.85

And hogs down .65 to end at 54.85.

No more markets till Mondays over night trade.

Is that 54.85 hog number per hundred? This equals .5485 per lb?

I thought the price was about .40 something back in the 80's?

If so, they sure haven't improved much.

IaGary · Nov 7, 2015

Yes all meat is bid per hundred pounds. So you are right $54.85 per hundred would be 54.85 cents per pound.

Same with beef. It would be $1.34 per pound.

We also saw some $50 and higher hogs in the 80's.

Our prices have not inflated much over the years but inputs have. So we've have gotten more efficient in our production of grain and meat to still make money at it.

One man can raise more today than he could in the 80 or before.

Eric in IL · Nov 7, 2015

Speaking only to swine production, I don't see much gain in efficiency when it comes to equipment or methods of actually raising a hog since the 80's. I don't think technology has replaced much "grunt" work from the physical aspect of raising hogs.

The gain in efficiency that I do see is in management. The first sign of red ink now means close the doors. That is easy enough if you are only finishing hogs. What about the folks that are farrowing ? Do you sell the brood stock or continue to feed it at a loss until the market improves ?

IaGary · Nov 7, 2015

When I say more efficient I am talking about the number of acres or the number of head one man can produce today versus 30 or 40 years ago.

Dad an I use to grow 500 acres of crop and had our hands full. I am way over that by myself now.

I use to finish 1000 hd of hogs per year. My son in law is over 5000 by himself. This is just finishing. He has confinement buildings I had open lots with a barn.

Producing more with less labor.

Pair-a-dice farm · Nov 7, 2015

Feeder cattle were down $5cwt Thursday. Last year they changed how much the market can change in one day. I was capped at $3 but now can change $4.50 cwt and up to 150% the next day after the market closes the limit the day before.
Has other commodities been changed also?

Nearly everything is done with less now days. When I was in the chicken business I started out growing a 6.5# broiler in 9 weeks. When I sold out we were up to 8.75# in 9 weeks and now they are over 10#. I can also remember weaning calves at about 205 days in the 350-400# range. Now I wean them at 6-650# at 180 days. Some folks are getting them bigger than that.

Eric in IL · Nov 7, 2015

Agree totally, much more produced per man/hour. We were "small fish" in the 80's, still are for that matter. Had a 10 sow farrowing house with rooms for raising to 40 lbs. on the end. Sows gestated on the dirt with choice of old barn for shelter. The farrowing house was put up new though, and had similar automation of today but no computers.

Now, is your SIL any better off today than you and pop were back in the 80's ? I know there are a lot more zero's on his cash flow, but what about the bottom line (adjusted for inflation).

IaGary · Nov 7, 2015

Is SIL better off?

He is making a living as I did.

It is all relative.

It is easier for him to expand or I for that matter, today. Cost of money is lots less. 5 percent interest instead of the 17 I paid in the 80's.

notjustair · Nov 7, 2015

We made good money on hogs in the 80's but inputs were much lower. We grew milo, wheat, and barley to grind the feed. The only thing we purchased was the bale of alfalfa in each batch. We were finish only. I know we bought milo seed but I think everything else was seed carried over.

I do farrow to finish and trim cost as much as I can. That's lots easier to do with $3 corn. You run the animal market like the stock market. You stay in for the long haul and it will give you a return if you have the capital to tough out the bumpy spots.

No one else around here runs hogs anymore. I have ended up selling all of the year's litters at $1 on the hoof or $1.50 hanging weight. That's a lot of hogs. I was hesitant to do it because I figured people wouldn't pay it. By golly they will. The allure of pork raised on dirt is still alive and kicking.

Fridays closing markets

IaGary

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Spook

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IaGary

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Eric in IL

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IaGary

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Pair-a-dice farm

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Eric in IL

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IaGary

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notjustair

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