# Low feedlot cost of gain making an impact in stocker cattle decisions | Oklahoma State University

> 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.

- Date: 2017-03-06 · published 2017-03-06T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/72137-low-feedlot-cost-of-gain-making-an-impact-in-stocker-cattle-decisions-oklahoma
- Commodities: [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

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.

## Read by commodity

- CORN: neutral
- FCATTLE: neutral

## Sources

- news.okstate.edu: https://news.okstate.edu/articles/agriculture/2017/low-feedlot-cost-of-gain-making-an-impact-in-stocker-cattle-decisions

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