You know I'm dedicated because just as I was wrapping up this post, my browser crashed.  Now I have to re-write the whole thing.  So you had better get a LOT out of it, because double the normal effort has gone into it!

Feedlot profitability continues to IMPROVE!  This last week has really been just what the doctor ordered for the feedlots.  Now, if we could just keep this margin correction going for the next six months or so, we might actually see widespread profitability!  That's how deep the hole is, kids.  But I'm not holding my breath.  Once feedlots get within sight of actual profitability they tend to puke it all back up like the KRVN on-air talent on a Friday night.  (The webmaster has told me ALL KINDS of stories.)

But I digress.  Let's look at the math!

SELL 1350# fat steer @ $80.62 (today's August Live Cattle settlement price)

BUY 750# steer @ $95.85 (today's August Feeder Cattle settlement price)

Return on the gain = $0.62 per pound.  If you check out my June 2nd post, you will see that this is definitely IMPROVEMENT!  Yes, yes.  I know the market has dropped, but you MUST remember, market direction has NOTHING to do with the margin.  Zippo.  If you're still focusing on "up" and "down", you're barking up the wrong tree, son.

Tomorrow, some CRAZY stocker Fun With Math.