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While corn prices drop, feeder futures prices move higher potentially offsetting any benefit from lower corn prices.

As commodities skyrocket, you have to wonder how much feeder cattle placements are really worth.

Recent sharp drops in corn prices may cause some pain for producers, but end users benefit. This is how the free market should and does work, says Jerry Gulke.

Report to show On Feed and Placements above year-ago levels.

The cattle feeder’s cost of gain will increase approximately $0.04/lb from corn basis alone.

But projected breakevens for live cattle do not appear favorable.

The inventory and placements were 4 percent above July 1, 2010.

As farmers face the probability of low-quality wheat -- in some cases below quality standards for milling -- they can look for alternative markets for their crop.

While not a drought buster, the welcomed rains will help fill dried tanks and recharge dwindling water supplies.

It’s too early to predict the effects on crop yields and livestock production, but 2011 is definitely not going to be as good as 2010 in Louisiana.