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Store cattle price autumn 2023

  • 11-04-2023 10:57PM
    #1
    Registered Users, Registered Users 2 Posts: 1,978 ✭✭✭


    I’m just curious to know what do you think the store cattle price will be the fall of the year? I know it will depend on weather and beef prices

    I was in the mart Monday and store cattle were a roaring trade

    I purchased my cattle last October,November they were all continentals roughly half comming from dairy cows and the other half suckler bred, these will be all Rs with maybe the odd U, these weighed 420kgs comming in at €1020,

    At a guess what will these cattle be costing this fall?



Comments

  • Registered Users, Registered Users 2, Paid Member Posts: 4,626 ✭✭✭kk.man


    It's a crystal ball really but you you not finish them? I can't see you losing much at that purchase price.



  • Registered Users, Registered Users 2 Posts: 2,620 ✭✭✭J.O. Farmer


    I think the OP may want to buy similar cattle this autumn.

    Crystal ball gazing but generally this is a dear time of the year to buy stores.

    Too many variables such as how the summer goes and how much fodder is made as well as beef prices and weather.



  • Registered Users, Registered Users 2 Posts: 1,978 ✭✭✭morphy87


    Yeah it’s I’m just wondering what it cost to replace cattle,going by the current trend it will be exspense



  • Registered Users, Registered Users 2 Posts: 1,978 ✭✭✭morphy87




  • Registered Users, Registered Users 2, Paid Member Posts: 4,626 ✭✭✭kk.man


    I think it would be wise.. not enough money for everyone along the cattle game.



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  • Registered Users, Registered Users 2 Posts: 1,978 ✭✭✭morphy87


    I finish them every year but by the looks of it, it’s going to be very difficult to buy back



  • Registered Users, Registered Users 2, Paid Member Posts: 4,626 ✭✭✭kk.man


    That's the problem with a rising market. An old man said to me you still have to buy to keep in this game....tax man etc



  • Registered Users, Registered Users 2 Posts: 1,978 ✭✭✭morphy87


    I was asking my accountant this before and he said you only pay tax on the profit, that you’re existing value of your livestock at the start of the year is taking into account when you sell, I’m not sure about this if anyone knew it would be great



  • Moderators, Society & Culture Moderators Posts: 1,958 Mod ✭✭✭✭Albert Johnson


    If beef is still a record trade come the backend then what you have to kill should be worth a right bit. This would soften the blow of having to buy there replacements at record prices. Conversely if beef takes a hit then it should be easier to replace them as the live trade will move correspondingly. In a trading system you're mainly focused on what is left between selling stock and replacing them. Selling cheap and buying cheap could be as lucrative as selling dear and buying dear (there's less capital tied up in the first scenario).

    Ideally there's one time to replace stock imo and that's when you're selling the previous bunch. That means you're riding whatever wave is present at that particular moment. The people who stand the biggest chance of getting burned in the cattle trade in the coming month's imo are the summer grazer's/7 months men. They sold there stock into an average trade last backend and now face replacing them at record prices. This will require tying more capital up in stock and you could face giving the most of last year's finished price for the equivalent store atm. There's nothing to say that the beef/live trade will be anything exceptional come the autumn and you could see a return to more traditional prices giving a double whammy effect.



  • Registered Users, Registered Users 2, Paid Member Posts: 4,626 ✭✭✭kk.man


    That's true to a point but the book value of your stock on 31st December is taking into account



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  • Registered Users, Registered Users 2 Posts: 1,978 ✭✭✭morphy87


    So from a tax point of view what would happen if I didn’t replace my cattle this year but waited till the spring?



  • Registered Users, Registered Users 2 Posts: 11,863 ✭✭✭✭patsy_mccabe


    You only pay income tax on Profit, you don't pay it on cash. Cash is an asset. You also have to take inflation into account with cattle prices. You may try and be clever and stay out of the market but in reality, prices could continue to rise due to inflation.

    A Crystal Ball is what we all could do with.

    I've heard you say many times that you're better than no one
    And no one is better than you
    If you really believe that you know you have nothing to win
    And nothing to lose



  • Registered Users, Registered Users 2 Posts: 684 ✭✭✭k mac


    Is this what they call going on inventory. It is something my accountant has discussed with me before, but he is against it, saying something about once you go on inventory you have to stay on it forever and if you ever decided to increase numbers you would be taxed heavily then...confused but would love to know because i am going to do said above when i sell this year i am not going to replace till next spring



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