Justin Waggoner, Ph.D., Beef Systems Specialist, Garden City
The most recent edition of the K‐State Focus on Feedlots reported an average cost of gain of $119.97/cwt. and $134.44/cwt. for steers and heifers marketed in April, respectively. The average placed cost of gain was $138.25/cwt. for steers and $136.25/cwt. for heifers, with an average corn price of $7.95/bu. These values have prompted many to ask if these values are the highest cost of gains and placed cost of gains we have seen?
The answer to that question is no, not yet. However, we are certainly getting close. The highest reported cost of gains for steers and heifers in the Focus on Feedlot data (Jan. 1990‐present) occurred in March 2013 ($133.72/cwt. for steers and $136.76/cwt. for heifers). The graph below illustrates the reported cost of gain from 1990 to present. As the data in the graph illustrates, we have seen cost of gain values in excess of $125/cwt. for both steers and heifers during the spring of 2013.
For more information, contact Justin Waggoner at jwaggon@ksu.edu.