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Economist says cattle feeders are facing “maximum financial exposure”

An economist with Iowa Farm Bureau points to an increased risk for cattle producers amid high prices.

Christopher Pudenz says his tagline for the feedlot portion of the market is “maximum financial exposure.”

“Because I think that’s a situation where a lot of feedlot folks find themselves in right now, prices are really good now (and) they’re looking good on into the summer. But there is major financial exposure just in terms of what input costs look like.”

He tells Brownfield feeder cattle prices are strong, but the corn market is also gaining strength.

“Which is great news to our corn farmers, but if you’re feeding corn and trying to calculate a margin that makes a difference for what things look like later this summer.”

Pudenz says risk management is going to be very important for cattle feeders.