# Will higher corn prices temper the expectation for higher feeder cattle prices? | Ohio BEEF Cattle Letter

> An Ohio State cattle letter by Dr. Andrew Griffith argues that rising corn prices will temper feeder cattle price gains, since higher feed costs reduce what feedlots can pay for feeder cattle. It notes that strong live cattle futures offset this pressure and that futures and LRP insurance offer hedging opportunities for summer and fall sales.

- Date: 2021-02-24 · published 2021-02-24T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/48782-will-higher-corn-prices-temper-the-expectation-for-higher-feeder-cattle-prices
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md), [Live Cattle](https://feedsoft.ai/c/LCATTLE.md)

## Why it matters

Higher corn costs squeeze feedlot margins and pull feeder cattle prices lower, while firm fed cattle expectations support them, so buyers should expect a tug-of-war rather than a clear trend.

## Read by commodity

- CORN: bullish ▲
- FCATTLE: neutral
- LCATTLE: bullish ▲

## Sources

- u.osu.edu: https://u.osu.edu/beef/2021/02/24/will-higher-corn-prices-temper-the-expectation-for-higher-feeder-cattle-prices/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.