Cattle producers are likely to use more corn than previously expected according to the U.S. Department of Agriculture’s latest Cattle on Feed report.
The implication of the October 21 report is that feed grains used by cattle in feedlots from the 2011 crop will be more than 5% higher than what was fed from the 2011 crop.
“The real surprise was the higher number of placements in September that resulted in more than one-half million more cattle being fed than a year ago,” said Purdue Extension agricultural economist Chris Hurt.
Calves can eat corn, but also can add weight with forages. However, according to Hurt, the high number of feedlot placements in September serves as an indication that corn has become “cheap” relative to forages.
“December corn futures fell by $1.75 per bushel in September, which was enough to shift the feedlot outlook from bleak to rosy,” he said. “Managers responded by buying light-weight animals, as placements of calves under 700 pounds were up a remarkable 14%.”… Continue readingRead More »