The market is still trying to figure out the ultimate long-run effect of the beta-agonist Zilmax™ being pulled off the U.S. and Canada market by its manufacturer Merck Animal Health. That question will only be appropriately answered over time.
A multitude of factors drive the price that producers receive for feeder cattle on any given day. Some of the more important drivers include deferred fed cattle futures, the price of corn, and forage availability. However, location is also a key factor.
There’s been an important shift recently in cattle price differences between fed and feeder cattle. Before the U.S. cattle industry can begin to fully rebuild after several years of contraction, it’s necessary for equity recovery to take place in the cattle feeding sector.