Dr. Curt Lacy (UGA)
500 pounds calves sell for $125/cwt. plus! Slaughter cattle selling for $105+, what could possibly go wrong? Plenty.
The chart below shows the very strong relationship between corn supplies and prices. Given what we know about the tight global grain supplies, producers are strongly encouraged to keep a close eye on the corn market as that price plays a very critical role in in what feedyards will pay for our cattle. The bottom line is any weakness in the Live Cattle market and continued strength in the corn market could have southeastern cattle producers “upside down” in a hurry.