Cattle finishing net returns prospects for 2021

What are the recent trends in feeding cost of gain, the feeder to fed price ratio and cattle finishing net returns?

 

Source: Illinois State University

via Michael Langemeier, BEEF Magazine - Jan 12, 2021

 

COVID-19 and fluctuating fed cattle and feed prices resulted in another challenging year for cattle finishers.  An earlier article (farmdoc daily October 9, 2020) examined net returns for the first nine months of 2020.  This article updates feeding cost of gain, breakeven prices, and net return estimates for 2020 and provides projections for the first half of 2021.  It is important to note that the net return estimates in this article do not include Coronavirus Food Assistance Program (CFAP) payments.  Information pertaining to these payments can be found in the fact sheets listed in the citations.

 

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 (here).  Futures prices for corn and seasonal feed conversion rates were used to project feeding cost of gain for the next several months.  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) (here), and interest rates from the Federal Reserve Bank of Kansas City.

 

Feeding Cost of Gain ...

 

Feeder to Fed Cattle Price Ratio ...

 

Net Return Prospects ...

 

Conclusions ...

 

more, including charts [4]

https://www.beefmagazine.com/beef/cattle-finishing-net-returns-prospects-2021