Cow calf producers should follow feedlot profitability as a guide for future calf prices, according to market analyst Brian Perillat.
Feedlots are pretty generous about re-investing profits in cattle but “slow to put losses back into the market.”
That practice impacts calf prices.
In 2014-2015 high calf prices came when feedlots stocked lots of cattle.
“They panicked in 2016, really backed off. Those cheap calves turned out to be really profitable.
The feedlot sector “hasn’t been making money for the last year and a half.”
A $1 bushel drop in feed prices last fall helped feedlots and they made money in December.
“If the feedlot makes $150 a head that can translate to 30 cents a pound more for your calves.”
Ron Walter can be reached at ronjoy@sasktel.net
