2010 was a year of change

摘要

Two economic forces are driving a new economic "normal" that is unfolding in U.S. ranching - stronger beef demand and near-record high corn prices. At press time, prices for fed cattle and corn were both trending upward. Meanwhile, strong fed-cattle prices and rising feedlot profits were pulling feeder-cattle prices higher as well. Based on mid-December placements, my current budgets (Figure 1) suggest a $58 loss/head from growing and finishing 550-lb. feeders with $4.94/bu. corn and a minus $37 buy/sell margin. A second budget shows a $43 loss/head from finishing 800-lb. feeders with $4.94/bu. corn and a -$15 buy/sell margin.