# Cattle feed costs impacting profits in 2021

> Corn prices rose more than a dollar per bushel from early August through mid-November, and nearby feeder cattle futures fell $7.50 over the same span while live cattle futures gained more than $7. Chinese hog herd rebuilding after African swine fever is cited as a major driver of the grain rally.

- Date: 2020-12-03 · published 2020-12-03T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/49797-cattle-feed-costs-impacting-profits-in-2021
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Higher corn costs reduce the amount feedlots will pay for feeder cattle, which squeezes cow-calf and feeder returns. Feed buyers should expect costlier corn to persist into 2021 if the rally holds.

## Read by commodity

- CORN: bullish ▲
- FCATTLE: bearish ▼

## Sources

- farmprogress.com: https://www.farmprogress.com/management/cattle-feed-costs-impacting-profits-in-2021

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