Higher Corn Prices Send Fear Into the Feeder Cattle Market


By ShayLe Stewart, DTN/Progressive Farmer



Cow-calf producers are looking at the stark realities of today's feeder cattle market and are caught holding their breath. To no fault of their own, 2020 has been a fickle year to market calves and hitting the market at an advantageous time is tough.


With drought sweeping across the country and corn prices now on the rise, feeders must look long and hard at their break-evens before they can walk confidently into a sale barn and purchase calves. For most spring calving cow-calf producers, this couldn't come at a worse time, as a large portion of producers rely on marketing their calves in October and November.


As we enter the second full week of October, there are more outside factors weighing on the feeder cattle market now than even a month ago. Drought and rising corn prices quickly come to mind and can vastly change the outcome out the market week-over-week. On Aug. 3, corn was at $3.28, and in a matter of two short months corn prices jumped to nearly $4.00 by Oct. 1, then closing at $3.95 on Oct. 9.


Dealing with drought conditions and the cost of carrying calves over into a different market can be so burdensome that producers are left with no other choice but to send their calves to town and let the market be what it is. But adversely, rising corn prices put the skids on buyers as input costs must be cautiously monitored.


Watching how this week's feeder cattle market plays out is going to be tenacious...


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