Higher Feed Prices Affect Feeder Cattle Markets

Continuously rising feed prices are again influencing the performance feeder cattle market. Higher feed prices usually work their way into the annual calf crops slowly over the course of several months with higher prices. Fortunately, feeder owners are able to use less grain by taking advantage of cattle ruminant flexibility, unlike pork and poultry producers who can only reduce production to compensate. View a chart of the feed price versus cattle weight relationship. Producers who are concerned with the long-term volatility and effects of higher-priced feed may find that a Livestock Gross Margin policy, which can protect against loss of gross or finishing margins due to an increase in feed cost, is a good fit for their operation.