Due to the ongoing volatility in prices we assembled a set of spring 2022 feedlot projections looking at purchasing and placing animals on feed in late April and early May. We used current feed prices including pricing dry corn as currently in storage that could be sold as cash grain. Corn stored as high moisture grain last fall is likely worth less due to fewer sale options.
Spring 2022 purchase prices were determined by looking at late April area feeder sales in western Wisconsin and southeastern Minnesota. Projected sale prices were estimated by looking at futures contract prices, seasonal and cyclical trends, current placements, and animal breed influence on prices.
Current prices, cost structures, and volatility are resulting in rapid changes in the enterprise margins this spring and will continue to affect margins.
These projections are intended to serve as an initial guide. These projections are based on averages; therefore, the prices and scenarios will not apply to every feedlot operation. They serve as a guide for helping producers to use their own numbers to evaluate their specific situation.