Value of Gain – Stocker

The Stocker VOG tool uses BeefBasis analytics to forecast current and future local cash prices ($ per cwt) and values ($ per head) for a steer or heifer. First, select a beginning date and initial weight for the animal and then choose a projected rate of daily gain (ADG) and desired sale location for the price projections. Based on these inputs, the Stocker VOG tool calculates a projected local cash price for the animal at the beginning date and 6 dates in the future.

The future weight is calculated at each 30-day interval using the user-selected daily gain. (For example, a 500 pound animal with a daily gain of 2.0 would be projected to weigh 560 lbs. after 30 days, 620 after 60 days, etc.). Estimates of future prices and values incorporate information from deferred futures contracts and the future weight of the animal.

Each row of the table represents a 30-day period. The tool calculates and displays the total increase in value of the animal over the 30-day period (VOG Per Period) and the increase in value per pound gained by the animal (VOG Per CWT is equal to Total VOG divided by pounds gained). The muscling score, and frame score used in the calculations are the most common muscling and frame score for the auction yard you selected. It is also assumed that the lot contains 10 head.

The Stocker VOG tools allows the user to analyze and compare the value created by adding additional weight to cattle and marketing them at a future date. In combination with information about the cost of gain (COG), this information can help a producer decide whether and for how long it may be profitable to retain and feed their cattle.