Estimated returns to finishing 550 lb steer calves continues to show increasing profits through July 2025 with cattle that finished in July estimated to have made $874 per head. Expected returns for 550 lb steer calves that will finish over the next few months are expected to show good returns with returns for calves finishing in December projected to be $425 per head in calculated profits.  Projected profit forecasts based on futures prices for feeder cattle, corn, and fed cattle show significant declines in profit potential for calves that will finish in the first half of 2026 (Figure 1).

Figure 1. Estimated Returns to Finishing 550 lb Steers in IA

Figure 2. Estimated Returns to Finishing 750/850 lb Yearling Steers in IA

Estimated returns to finishing 850 lb steer yearlings continues to improve in the first half of 2025 with profits during July estimated to be nearly $427 per head. Expected returns for 850 lb yearling steers that will finish over the next few months are expected to show positive returns, however by early winter, the returns for yearling steers is projected to turn negative with losses per head possibly topping $200 by mid-year 2026 (Figure 2).

Corn costs for finishing both calves and yearlings were lower than a year earlier during the first half of 2025. Based on forward corn futures prices, there could be some moderation in feed costs for calves during the next few months while total corn costs for yearlings finishing in the months ahead are expected to rise slowly over the next year (Figure 3).

Figure 3. Corn Cost ($/hd)

Estimated fed to feeder margins remain at relatively high levels as feeder cattle prices continue to gain on fed cattle prices, especially for 550 lb calves. The spread between calves and fed cattle prices is expected to continue to widen in the upcoming months. Whereas the spread between yearlings and fed cattle prices is expected to begin narrowing in late 2025, early 2026. (Figure 4).

Figure 4. Estimated Fed to Feeder Margins ($/hd)