Cattle feeding cost might alter practices
A Purdue University ag economist says cattle feeders are sustaining large losses to net returns. Michael Langemeier tells Brownfield cattle feeding cost to gain went from $82.25 per hundredweight in January to an expected $102 to $105 for the second half of 2021.
“Each dime movement in corn prices, which is a small movement compared to what we’ve seen, increasing feeding cost to gain about 90 cents,” he said.
Langemeier said higher corn prices typically cause a few management changes for cattle feeders including using alternative feed inputs and…
“We tend to back graze our cattle a little bit longer and the cattle aren’t placed on feed, these heavy corn rations, until they’re a little heavier,” he said. “We’ll see several different adjustments occur.”
Langemeier said feeders should think about locking in later corn contracts to manage risk against its upward potential.