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Tuesday, November 29, 2016

Tighter grainfed gross margins start to bite

By Matt Dalgleish  |  Source: MLA, ACA

The gross margin on a three month grainfed cattle trade has dipped to the lowest level this season during November at $235 per head after reaching a peak in July/August of $575 per head. This article takes a look at the relationship between the saleyard purchase volume by feed lots of young cattle and the gross margin on a three-month trade to determine what impact tightening margins may have on demand for feeder cattle.

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