During December 2020, the price for 500- to 600-pound steers in South Dakota briefly averaged above $190 per hundredweight (cwt) for a couple of weeks, a level last observed in early 2016.

On Dec. 18, the USDA Cattle on Feed report was released. The trade expectations told a consistent story of lower placements and marketings from a year ago.

A look back at past price relationships during May sheds some light on the gross margin of running stockers. This spring the gross margin and feed costs have again changed, suggesting implications for several different prices.

While visiting with agriculture bankers in recent weeks, several asked about feeding margins and what their customers could do to manage margins. Protecting the margin is a common concern of cattle feeders too. One way to monitor the margin is to use the format from Livestock Gross Margin (LGM) insurance.