Factors affecting variability in feedlot steer profits

Abstract

This study examined the relative importance of price and animal performance factors on cattle finishing profitability. Using data from a single feedlot, sale prices, feeder prices, and corn prices explained 90 to 95% of the variation in steer profits. About 50% of the variability was explained by fed cattle prices alone. Because sale, feeder, and corn prices have a large impact on profits per head, cattle feeders should attempt to manage the risks associated with these three factors.