I think much depends on the 2013 corn growing season weather. If there are signs of a more "normal" weather year and a decent crop, I see corn prices in the $5 range and the economics of cattle a whole lot better. In which case there will be demand to increase the US herd and cattle on feed. Feeders could then go above the current futures market. On the other hand, another weather year like 2012 in the corn belt and continued $7+ corn prices and its a whole different ballgame for cattle. At that point current futures prices for feeders might look pretty good. If we use Garvo's 100 bu of corn to finish a feeder, the difference between $7 corn and $5 corn is $200 a head. That seems like it makes or breaks the folks feeding them. jmho. Jim
Edited by Jim 11/1/2012 14:42
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