# Stocker value of gain incentive is shifting

> Peel advises stocker producers to weigh purchase weight, grazing length and sale weight, since stocker margins will be squeezed unless feed grain prices rise significantly. He says feeder prices in the past month have adjusted to lower feedlot cost of gain after lagging through late 2016. The shift favors lighter cattle being turned over faster.

- Date: 2017-03-11 · published 2017-03-11T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/72138-stocker-value-of-gain-incentive-is-shifting
- Commodities: [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Low feed grain prices are pushing the feeder market toward lighter-weight placements, which affects demand for feeder cattle by weight. Sustained low corn prices keep feedlot cost of gain low.

## Read by commodity

- CORN: bearish ▼
- FCATTLE: neutral

## Sources

- beefmagazine.com: https://www.beefmagazine.com/cattle-market-outlook/stocker-value-of-gain-incentive-is-shifting

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