Cattle prices going down as cost of corn goes up

In addition to continuing drought punctuated by the punishing blizzards that ended 2006, Colorado cattle producers are enduring a perfect storm in the marketplace: Prices paid to producers are depressed while the prices producers pay for inputs like corn are racing upward because of competition for corn from ethanol producers.

Ranchers, feedlot operators and cow-calf producers are currently receiving declining prices for their cattle at the slaughterhouse because of an abundant supply. The cattle cycle tends to span a 10- to 12-year period, fueled by consumer demand, herd supply and rebuilding time.

“Feeder and calf prices are now lower than in the…