Two recent U.S. Department of Agriculture reports indicated a red-hot grain and oilseed market was again heating up and raising corn prices for animal agriculture.
Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, said there are significant implications for cattle markets as corn future prices push higher during strong domestic and export demand exceeding lower-than-expected corn inventories.
He said weekly average cash corn prices in southwest Kansas and the Texas panhandle average $5.85 per bushel. In Dodge City prices rose to $5.99 and in Texas to $6.01. Peel said prices are up 79% to 82% over the low in early August 2020.
“Corn prices suggest that feedlot cost of grain in the southern plains will continue to push higher as feed-grain prices are fully reflected in feedlot rations. The latest Kansas Focus on Feedlots reports February steer closeouts with a cost of gain (COG) of $88.61 a hundredweight, up 16.9% from the recent low in October 2020. Projected steer COG for placements is $103 per hundredweight in the latest Focus on Feedlots report,” he said.
Peel said winter wheat prices in the southern plains have increased in the last eight months but not as much as corn. He said hard red winter wheat prices in Dodge City have increased about 41% since last August. The cash wheat price is $5.37 per bushel compared to a corn price of $5.85 a bushel.