The ratio of feeder to fed cattle prices since January 2011 is illustrated in Figure 2. Results are as follows: each 0.10 increase in feed conversion increases feeding cost of gain by $1.20 per cwt., each $0.10 per bushel increase in corn prices increases feeding cost of gain by $0.88 per cwt., and each $5 per ton increase in alfalfa prices increases feeding cost of gain by $0.45 per cwt. Rather, feed conversion is typically lower during these two months than feed conversions from January through April. The lower feeding cost of gain for May and June is not due to lower corn price projections. For the second quarter of 2022, feeding cost of gain is expected to range from $100 to $104 per cwt., with the largest feeding cost of gain occurring in April. Feeding cost of gain for the first quarter of 2022 is expected to range from $104 to 107 per cwt. Relatively high corn prices will likely keep feeding cost of gain during the next six months above $100 per cwt. in 2021 ranging from a low of $82.28 in January to $109.54 in October. Feeding cost of gain averaged approximately $100 per cwt. The estimates for November and December 2021 represent projections. Feeding Cost of Gainįigure 1 illustrates monthly feeding cost of gain from January 2011 to December 2021. Net returns were computed using feeding cost of gain from monthly issues of the Focus on Feedlots newsletter, fed cattle prices and feeder cattle prices reported by the Livestock Marketing Information Center (LMIC), and interest rates from the Federal Reserve Bank of Kansas City. Several data sources were used to compute net returns. Average daily gain, feed conversion, days on feed, in weight, out weight, and feeding cost of gain were obtained from monthly issues of the Focus on Feedlots newsletter.įutures prices for corn and seasonal feed conversion rates were used to project feeding cost of gain for the next several months.
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