Ethanol Changing Cattle Price Equation
Ann Toner
Nebraska Farmer
Ethanol production is causing a shift in the traditional relationship between corn prices and cattle prices, according to Darrell Mark, University of Nebraska agricultural economist.
Speaking to primarily to a cattle-producer audience at the Nebraska Grazing Conference in Kearney recently, Mark said higher corn prices appear to be prompting cattle feeders to bid more for heavier feeder calves, which are traditionally several dollars per hundredweight under lighter calves.
That’s because cattle feeders have to pay more for corn. Prices quoted for distillers grains are often 80-95% of the price of corn on a dry matter basis.
