Cheap corn may drag cattle down

Livestock raisers are enjoying corn prices that have tumbled, but that could mean fewer acres planted to corn next year and lower bids on beef cattle.

“With high prices, farmers all over the world have incentives to increase production. With lower prices, those incentives just aren’t there, for either acres or intensive inputs to push production,” said Mark Welch, AgriLife Extension grains marketing economist in College Station. “On the demand side, we are still seeing strong export demand and good feed and fuel use. High meat prices offer rewards to increase livestock numbers and feed to heavier weights; that will require more grain used for feed,” Welch said.

Less corn leads to higher prices for the grain, which means buyers trying to protect their margins can’t pay as much for cattle because it will take more money to feed them.

Chicken habitat grants available

ConocoPhillips, is helping the Playa Lake Joint Venture offer grants to improve the habitat of the lesser prairie-chicken.

Read more