COVID restrictions are likely to continue to be eased over the upcoming months. This can be seen in both the 2015-2019 average and the 2021 price line on that same chart.Ī lot of demand factors are encouraging as we move through spring. Historically, May is a good month for fed cattle and beef prices as weather is warming up and we are moving into the spring grilling season. Early May was about the low point for cattle harvest in 2020 and can be easily picked out by the bottom made this time last year in the slaughter steer price chart above (see the dotted 2020 line). A quick look at the year-ago column of the price table below reveals how much better things are in most markets than they were this time last year as we were dealing with increasing challenges from the COVID-19 pandemic. The feeder to fed price ratio was one standard deviation below (above) this average for 13 (18) months during the ten-year period.– Kenny Burdine, Livestock Marketing Specialist, University of KentuckyĪs I write this on the first Monday of May, it’s hard not to think about all the changes we have seen over the last year. ![]() ![]() During the ten-year period, this ratio averaged 1.20. Feeder cattle and fed cattle prices were obtained from the Livestock Marketing Information Center ( here). The ratio of feeder to fed cattle prices for the last ten years is illustrated in Figure 2. Results are as follows: each 0.10 increase in feed conversion increases feeding cost of gain by $1.43 per cwt., each $0.10 per bushel increase in corn prices increases feeding cost of gain by $0.87 per cwt., and each $5 per ton increase in alfalfa prices increases feeding cost of gain by $0.55 per cwt. Regression analysis using data for the last ten years was utilized to examine the relationship between feeding cost of gain, and feed conversion, corn prices, and alfalfa prices. Given current corn and alfalfa price projections, feeding cost of gain is expected to range from $79 to $82 during the first 6 months of 2019.įeeding cost of gain is sensitive to changes in feed conversions, corn prices, and alfalfa prices. in 2018 ranging from a low of $74.87 in May to a high of $80.31 in December. Feeding cost of gain averaged $78.10 per cwt. Feeding cost of gain information was obtained from monthly issues of the Focus on Feedlots newsletter ( here). Feeding Cost of Gainįigure 1 illustrates feeding cost of gain from January 2009 to December 2018. In this article, we will quantify the impacts of changes in corn and alfalfa prices on feeding cost of gain and net returns. Upcoming acreage decisions will have important ramifications on crop and forage prices, which will in turn, effect feeding cost of gain and net returns. After dropping below $75 per cwt in May 2018, feeding cost of gain increased to $80.31 in December. This article elaborates on the factors impacting feeding cost of gain and cattle finishing net returns. ![]() Illinois Farmland Leasing & Rental FormsĪ recent farmdoc daily article examined the prospects for cattle finishing net returns in 2019 ( February 6, 2019).Illinois Crop Budgets & Historic Returns.Farmland LEasing Facts Sheets & Pricing Information.Illinois Soil Productivity & Yield Utilities.Briomass Crop Budget Tool – Miscanthus & Switchgrass.Appraisal of Current Financial Position.Balance Sheet & Historical Financial Statements.Post Application Coverage Endorsement Tool (Sheet).Precision Conservation Management (PCM).
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