Good evening!  I'm burning the midnight oil in Denver!  I just wanted to share a quick FUN WITH MATH from up north in Mitchell, South Dakota.  Here's a big shout-out to all readers up in the land of dour Norwegians.  I'm really sorry about Tom Daschle.  That must be so embarrassing.  But, keep your chins up!

Yesterday at Mitchell:

789# top-quality steers went for $101.66 or $802.10

836# top-quality steers went for $95.89 or $801.64

The animal that was 47 pounds heavier went for slighly less gross dollars.  Here's your extremely useful information for the day:  If you have seven-weights in inventory right now, you should probably be thinking about selling them.  The market is telling us that it will not pay to take an animal from seven to eight.  Now, think back to yesterday's post.  I'm not talking about whether or not the market goes up in the near-future.  I'm talking about covering your gain cost.  If all you are thinking is "If the market goes up, it is good for me to hold my seven-weights" you are dead wrong and missing the boat - big time.  What you are doing is completely blowing off the COST OF GAIN. 

Let's say your cost of gain is $0.80 per pound.  To put 50 pounds on an animal it will cost you $40.  The market is saying you have a choice:  you can either have that $40 cost covered, or not.  That's it.  If the market goes up $20+ per hundred and seven weights are still going for the same dollars as eight weights, you just blew the $40 in feed.  Your cost wasn't covered.  It's really, really hard to be profitable when your costs aren't covered and you are giving feed away for free.  Savvy?

Tomorrow's topic will be that trendy subject that all the analysts are talking about:  Beef Demand.  You won't want to miss it.

Forecasters are killing the North American Cattle Industry.
"Global warming" is a complete fraud designed to advance the cause of socialism and enslave humanity.
Abortion is the murder of an innocent human being and is never justified under any circumstance whatsoever.
Every human being is a question, to which the ONLY answer is Jesus Christ.   

Ann Barnhardt
Barnhardt Capital Management, Inc.
www.Barnhardt.biz
888-799-4577
Ann@Barnhardt.biz

Bud Williams Marketing, Inc.
www.BudWilliamsMarketing.com
877-799-4577
Ann@BudWilliamsMarketing.com