The same factors that affected last year s retained ownership decision are present today but they are not giving us the same signals as last year. Fed cattle prices are higher than last year and corn prices are expected to remain low through the winter and spring. Placements are higher than last year, marketings are staying current but cattle out-weights remain above last year s weights. The signals are mixed. The prospect for improved returns is good this year.
Most experts believe the longer-term outlook for fed cattle is bright.
One alternative available to these cattle producers is retained ownership through the feedlot. Retained ownership is generally considered to be a strategy when cattle prices are depressed not when prices are expected to improve. It is true that producers limit retained ownership to depressed price years. But conditions this year warrant an evaluation. Low corn prices and the possibility of higher fed cattle prices in the spring suggest that producers should evaluate this marketing alternative in 1999.