Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 9/29/17


Cattle finishing net returns were positive from December 2016 through August 2017. Moreover, net returns were above $300 per head during March, April, and May. During the period from December 2016 through August 2017, fed cattle prices ranged from approximately $111 per cwt. in August 2017 to approximately $138 per cwt. in May 2017. Recently, fed cattle prices have declined below $110 per cwt. How does this price decline impact net return prospects? This article addresses this question and also discusses trends in feeding cost of gain and the feeder to fed cattle price ratio.

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