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Tuesday, June 30, 2015

Lotfeeder margin squeeze a risk for feeder upside

By Angus Brown  |  Source: MLA's NLRS, Trade

It’s no secret that lotfeeders have been driving young cattle prices for much of the year. Comfortable margins thanks to strong finished cattle prices have driven record number of cattle into feedlots. However, the recent rally in young cattle prices, which has now been joined by rising feed grain values, could start to squeeze margins and limit further upside for feeder cattle.

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