Lower Feed Costs Boost Feeder Cattle Futures

Feeder cattle futures have spiked to record highs as the price of corn continues to trend lower.  With less feed costs, our ranchers can see bigger profits after raising the animals and taking them to market.

Corn is the main, and preferred, ingredient ranchers use in fattening up cattle coming from pasture and corn has plummeted more than 35% this year alone.  A livestock auction house in Texas reported cattle prices selling $3 to $5 dollars higher than the prior week.    

The price of corn ‘is the main factor’ driving the feeder market,” said Lane Broadbent, vice-president of KIS Futures, Inc. in Oklahoma City, regarding the current feeder cattle futures situation.  Broadbent added,The cash market is incredible.”

We are long feeder cattle futures from yesterday, and with this new high there is no top yet in sight.  I’m watching my stops close with this cattle futures market.


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