High corn price affects cattle differently than hogs and poultry

Today’s Daily Livestock Report provides a prediction of the effect of corn price on carcass weights. It is a good read and is available along with all past editions of Daily Livestock Report at http://www.dailylivestockreport.com.

The assumption is often made that when feedstuff costs increase dramatically that a response in the livestock and poultry sectors is to lower carcass (dressed) weight. Basic economics suggests that response. If the feedstuff cost profile increases significantly, like from a short-crop, hog and poultry weights can decline relative to their up-trend. But, for cattle there are more considerations. Read more.