Cattle leaving the yard from June by way of November are projected to have fairly wholesome internet returns, in keeping with Kansas State College economist Glynn Tonsor. Web returns projected for closeouts in June are $269.48/head and $253.21/head for steers and heifers, respectively. Nevertheless, these returns should not anticipated to final endlessly.
“What occurs as we progress is there’s a sluggish uptick in anticipated fed cattle worth, however there’s a a lot sooner improve within the projected feeder cattle worth,” Tonsor mentioned. Whereas enter costs could come down barely, he defined that larger feeder cattle costs will damage margins as Christmas nears. Even so, steer and heifer closeouts in December are anticipated to be $158.96/head and $68.66/head, respectively.
From there, Tonsor’s projections counsel returns will flip unfavourable with losses of $10.23/head for steers and $51.58/head for heifers in January. Steer returns will return to the black in February, however heifer returns are anticipated to remain unfavourable for a number of months.
