Feeder Cattle Prices Jump as Corn Slumps

in commodities New Gold by admin — October 1, 2010 11:30 am | no comments

Filed under: Forecasts , Commodities , Agriculture What is the connection between feeder cattle and corn? Feeder cattle are placed on feed lots to fatten up before slaughter. Their weight gain is between 800 to 1,200 pounds each. The biggest expense for feedlot owners is grain. Corn is used as the main feed grain. Therefore if corn prices drop, feedlot owners pay less for feed and consequently will reap higher profits. What kicked off the drop in corn prices was a report by the U.S. Department of Agriculture (USDA) that inventories before harvest were the highest in four years, as reported in Businessweek . That news hit the corn market hard. December corn futures traded at $4.95 per bushel, down 9.4 cents. Continue reading Feeder Cattle Prices Jump as Corn Slumps Feeder Cattle Prices Jump as Corn Slumps originally appeared on BloggingStocks on Fri, 01 Oct 2010 13:30:00 EST. Please see our terms for use of feeds . Permalink �|� Email this �|� Comments