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Oklahoma State extension specialist Derrell Peel says the feeder cattle market is fully reflecting low feedlot cost of gain. That is squeezing stocker margins and shifting signals for how cattle are produced.
He notes feeder prices can diverge from feedlot economics at times.
Cheap feed lowers feedlot cost of gain, which favors buying lighter feeder cattle and pressures stocker returns. Feeder cattle prices are being reset to reflect that feed-driven value of gain.
news.okstate.eduMar 6, 2017Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
