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Agricultural News

Cattle Feedlots Expected to Finish Year with Red Ink

Mon, 19 Sep 2011 13:50:44 CDT

Cattle Feedlots Expected to Finish Year with Red Ink

The cash cattle prices in feedlot country are close to the highs of 2011 right now. Lately $1.17 to $1.18 per 100 weight is being paid, however, even at these levels we are still losing quite a bit of money. According to Erica Rosa-Sanko of the Livestock Market Information Center in Denver, we are going to continue to see the red ink of losses until the end of this calendar year.

For the balance for the year, Rosa-Sanko says it will definitely be in the red given where corn prices are headed as well as all remaining other production costs involved, which are also increasing. Rosa-Sanko says for the Livestock Market Information Center, the estimation for the August profit and loss or returns to cattle feeders is a loss of $164 per head, which is slightly below the $167 loss per head in July, but is still very deep in the red.

Rosa-Sanko adds that as the Livestock Market Information Center prepares for the end of the year balance, they expect returns to stay in the red but to decline some or improve so there will not be as big of losses that were seen this summer. Overall, they are looking to breakeven in the mid to high $120 per 100 weight range, which Rosa-Sanko is pretty high depending on where corn prices end up.

Rosa-Sanko says that for the year, profit and loss cattle feeding sectors in the Southern Plains on Livestock Market Information Center estimates can expect about an $80 to $85 loss per head.

Click on the LISTEN bar below to hear the rest of Ron Hays and Erica Rosa-Sanko's conversation on the losses in feedlots that have occurred this year and will continue to occur throughout the year.

The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the listen bar below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.



Ron Hays Beef Buzzes with Erica Rosa-Sanko on losses in the feedlots
right-click to download mp3


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