Corn prices spiked this summer, which pushed calf prices down for a short time until corn prices fell again, according to the report.
David Anderson, a professor and Texas A&M AgriLife Extension economist, said calves are typically sold to wheat or oat pasture, winter grazing, or a backgrounder before a feedlot. He said feed costs and calf prices have an inverse relationship: when corn rises, calf prices fall, and the reverse.
Anderson said calf numbers are historically small, which has pushed prices higher. He said the segments of the beef industry are separate and not fully integrated, so they do not all profit at the same time. He said feedlots and other businesses beyond the ranch are currently losing money, particularly feedlots, because rising feed costs limit how much they can pay for animals.