Livestock cost of gain is an issue that seemingly is not going away and has heightened the interest in tomorrow’s WASDE report. At current carcass weights, a dollar increase in corn price means about $10 per head for hogs, and for cattle means that cattle will be held back on grass for heavier feedlot placements, but feeding costs are still increasing. The chart below is from Kansas State University’s Focus on Feedlots newsletter showing placement weights and cost of gain for steers projected for current month placements, with WPI’s estimate for March 2021 given current trends.
Though heavier weight cattle will be sought by feeders, they’re likely to be picky about overly fleshy cattle that won’...
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