Showcattle.com Forum · General

Starting next Monday, the market price will be based on the following formula…

1 – Current weight average price for “Live FOB Basis – Beef Breeds, over 80% choice” from this report…

www.ams.usda.gov/mnreports/lm_ct150.txt

2 – Total weight of cattle sent to market over the past two months per currently active user

3 – Total weight of cattle sent to market over the past week per currently active user

The formula goes like this…

[1] * [2] / [3]

Basically, it increases the price if less beef per ranch has been sent to the packer over the past week and decreases the price if more has been sent. It’s tied to the real life market price via #1.

The current base price would be $117.84 CWT.

The price will be updated once every hour.

Cows are discounted to 68% of the market price.

All other cattle over 60 days old are discounted to 80% of the market price.

There will be a 2% premium for black hided cattle with less than 25% Brahman influence.

Cattle over 1,500 lbs will be discounted increasing up to 50% for cattle 2,000lbs and over.

You can now see the price of each animal next to their "send to packer" link.

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Last edited by admin on 8/22/2013 1:29:12 PM

I'm confused.

Are steers 60 days and under paid the base price?

And it seems like we are getting punished for sending more cattle to the packer?

And we are getting punished for sending heavy cattle, since you get less for them?

What exactly makes "large volumes" of cattle? 50? 100?

So now:

Heifers and cows are 68% of 1.17 instead of 76cents?

Bulls are 80% of 1.17, instead of 84cents?

Also if you send an animal both over 60 days and over 1500 pounds (since most of them are) would you be getting hit with the "older animal discount", the "heavy animal discount", or both?


And what about Brahmans and cattle with more than 25% Brahman influence- what kind of "discount" do they have?

(Why in the world is it called a discount when we are taking a pay cut? Discounts are supposed to be a savings, not a penalty...)


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Last edited by Broke Again Bradfords on 8/22/2013 2:52:02 PM

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Last edited by Broke Again Bradfords on 8/22/2013 2:54:16 PM

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Are steers 60 days and under paid the base price?

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Yes.

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And it seems like we are getting punished for sending more cattle to the packer?

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Nobody is being “punished” for anything. Why on earth would you use that word to describe it?

The price will go down if the supply goes up.

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And we are getting punished for sending heavy cattle, since you get less for them?

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Nobody is putting you in timeout.

Cattle over an acceptable market weight will get less money than cattle that are an acceptable market weight. Like in real life.

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What exactly makes "large volumes" of cattle? 50? 100?

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In what context?

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Heifers and cows are 68% of 1.17 instead of 76cents?

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Cows. The 68% number came directly from analyzing breaker cow prices vs the price for choice steers.

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Bulls are 80% of 1.17, instead of 84cents?

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Yes, cattle over 60 days old, two years in real life time.

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Also if you send an animal both over 60 days and over 1500 pounds (since most of them are) would you be getting hit with the "older animal discount", the "heavy animal discount", or both?

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Yes, cull cattle will get less, like real life.

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And what about Brahmans and cattle with more than 25% Brahman influence- what kind of "discount" do they have?

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I didn’t list one because there isn’t one.

(I said "punished" because it seemed more correct than "discount." cattle that are overweight, cows, older animals, etc. are getting "discounted" from the base price, which is a pay cut. I always thought discounts were a good thing taken off of purchases- like feed costs- not payout from the packer.)

Right now, you get paid market price whether you send 2 animals or 200 animals to packer- base price never changes.

Starting Monday, the price you get paid will decrease as you send more cattle to the packer. Yes?

" What exactly makes "large volumes" of cattle? 50? 100?

In what context?"

You said we will get less market price the more cattle we send to market.
"Basically, it increases the price if less beef per ranch has been sent to the packer over the past week and decreases the price if more has been sent."

How many animals does it take for us to get less market?

2 animals? 5 animals? 500 animals?

" Also if you send an animal both over 60 days and over 1500 pounds (since most of them are) would you be getting hit with the "older animal discount", the "heavy animal discount", or both?

Yes, cull cattle will get less, like real life."

I was asking by how much would a 84-day old, 1600 pound animal be "discounted":

This one:
"All other cattle over 60 days old are discounted to 80% of the market price."

or this one:
"Cattle over 1,500 lbs will be discounted increasing up to 50% for cattle 2,000lbs and over."

Or a combination of the two?

(I'm sorry to be such a PITA, I just want to make sure I get it, lol)





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Last edited by Broke Again Bradfords on 8/22/2013 3:30:17 PM

I LOVE LOVE LOVE it!!!!! Many of us raise cattle in the REAL world and this seems to be getting closer to the way things work in the world.

Broke Again Bradfords, the market price for each animal based on this system is currently listed next to the "Send to Packer" link.

If price goes down when the supply is high, What happens to feedlots, I dont know what its like in the U.S but in australia as a registered feedot you get bonus money for feedlot/grain fed cattle, so what about the bigger feedlots say with more then 250 feeder steers a month get registered and dont lose money when supplying to the packers, I hope it makes sence to other people. Just ideas to help feedlots.

There won't be any additional subsidies.

I saw them starting to come up.

Makes it a WHOLE lot easier.

Thank you!

Totally agree with Zeek! We raise cattle for real and this is getting closer to real life!

Thank you for all the effort put into this change!

Could this change have anything to do with the amount of cattle that are run through auction and bought at a really low price? I have been getting cattle that weight 2000 lbs for $1000, thats a quick 1k for me. Is that the reason for the sudden change?

-D Ranch, no.

Will we get 2 bucks for 300 pounders and a buck fifty for 500 hundred pounders and so on

I like!

BROWNS BLACK WHITE FACE, the packer price under this system for each calf is listed on their page right now.

I think this is awesome!!

So I would be better selling all my over 1500 pound steers on sunday before the new pricing comes in? I had a look through my pen and found 1400lbs steers had the same estimates as 1600lbs so instead of selling at 60 days I should sell at 1500lbs now.

Just making sure to make the most from each animal.

That being said I think this is a good idea, make the game much more realistic.

I was wondering if there would be a live market price for the
steers. I know there is an estimate on the value of the animal but i liked the market value like on the old one were it showed the cwt.

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posted by admin
1 – Current weight average price for “Live FOB Basis – Beef Breeds, over 80% choice” from this report…

www.ams.usda.gov/mnreports/lm_ct150.txt

2 – Total weight of cattle sent to market over the past two months per currently active user

3 – Total weight of cattle sent to market over the past week per currently active user

The formula goes like this…

[1] * [2] / [3]

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Should #2 be Average total weight of cattle sent to market per week over the past two months per currently active user?

So this is making the system more realistic, with real time price changes in the market. That's what I like to hear! I have no idea why people are complaining. Its supply and demand, a simple concept.

Will the condition of the cattle selling have any effect on the price?