The following is portion of an article from Drovers CattleNetwork:
by John Maday, Managing Editor
This year brought record prices for beef, calves and finished cattle, and 2014 promises continued success, particularly for cow-calf producers. That was one of the key messages when Cattle Fax president and CEO Randy Blach addressed a group of veterinarians at a “Prevention Works” conference hosted by Boehringer Ingelheim Vetmedica Inc.
Continued short supplies of cattle, growing international beef demand and a more favorable outlook for input costs all contribute to industry optimism as we head into 2014.
Blach says corn production finally has caught up with the extra demand from ethanol, and Cattle Fax projects corn prices to range from $3.50 to $5.50 per bushel over the next two years. Lower corn prices will bring feedyard cost of gain to much more manageable levels. Corn at $9 per bushel translates to cost of gain around $1.40 per pound, he says, while $5 corn brings cost of gain to around $0.80 and $3 corn reduces the cost to about $0.50 per pound. Lower cost of gain creates more competition for feeder cattle, with a positive effect on calf prices.
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Source: Drovers CattleNetwork
Posted by Haylie Shipp
