Projected feeding cost of gain for the third and fourth quarters of 2020 are $78.75 and $80.75, respectively.įeeding cost of gain is sensitive to changes in feed conversions, corn prices, and alfalfa prices. averaged $83.27 in the first quarter and $84.28 in the second quarter of 2020. in 2019 ranging from a low of $81.61 in October to $91.67 in March. Feeding cost of gain averaged $84.37 per cwt. Feeding Cost of Gain for Steers, Kansasįigure 1 illustrates monthly feeding cost of gain from January 2010 to August 2020. 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. Futures prices for corn and seasonal feed conversion rates were used to project feeding cost of gain for the next several months. 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). Several data sources were used to compute net returns. Information pertaining to these payments can be found in the fact sheets listed in the citations. It is important to note that the net return estimates in this article do not include Coronavirus Food Assistance Program (CFAP) payments. This article provides updated feeding cost of gain, breakeven prices, and net return estimates for the first nine months of 2020, and projections through the second quarter of 2021. Earlier papers examined net return prospects in early January ( here) and early May ( here). Traders on Friday will review weekly US export sales data for pork and beef.This year has exhibited wide swings in commodity prices, drastically changing net return prospects.

October lean hog futures ended up 0.950 cent at 82.825 cents per pound at the CME and stayed within Wednesday's trading range.

The USDA separately quoted the wholesale pork carcass cutout at $94.21 per cwt, down $4.12 from Wednesday. Choice cuts dropped another $1.91 to $311.66 per cwt and select cuts decreased $1.44 to $286.17 per cwt. However, there was talk of cash trades of $184 per cwt in Nebraska on a live basis, which would be up from about $182-$183 per cwt last week, he said.īrokers added that small volumes traded in Kansas at $179 per cwt, up about $1 from last week.īoxed beef prices weakened further, the US Department of Agriculture (USDA) said. Nelson said cash cattle traded lower than last week in Nebraska on a dressed basis. The markets extended strong gains from Wednesday.Įxpectations that a rally in cash cattle prices may restart in a few weeks are supportive for futures, said Rich Nelson, chief strategist for brokerage Allendale. October feeder cattle finished up 2.4 cents at 258.875 cents per pound and reached a contract high of 259.475 cents. October live cattle advanced 0.950 cent to close at 183.650 cents per pound and touched their highest price since July 20 at 184.525 cents.

Tight supplies continue to support the markets, analysts said, after US producers reduced their cattle herds over the last year as drought limited the availability of pastures for grazing. Chicago Mercantile Exchange (CME) live cattle futures climbed to a July high on Thursday while feeder cattle set new contract highs, reported Reuters.

July cash feeder cattle prices