9/5/2023 0 Comments Oklahoma feeder cattle prices![]() ![]() ![]() Additionally, the larger volumes of lighter animals being marketed are in northern and western regions of the country, where the drought has hit hardest and forage is limited. The relative increase in marketings of animals weighing less than 600 pounds indicates early weaning, which is a common practice in drought years. ![]() Nonetheless, the sale of lower weight feeder cattle, and percentage of heifers sold helps indicate the extent of liquidation.įor the August to September 17 time period, the percentage of feeder cattle sold weighing less than 600 pounds increased to 60% compared to 59% for the same period in 2020. How large this liquidation will be isn’t currently clear and won’t be known for certain until 2022. Areas hit hardest by the drought are seeing greater liquidation. The industry began contraction in 2019 with modest liquidation however, the 2021 drought has accelerated liquidation. The most recent cattle cycle began expansion in 2015, following 7 years of contraction. Each cycle has different phases: a liquidation phase, where cattle numbers decrease, and an expansion phase, where cattle numbers increase. Cycles can last from 4 to 18 years, with the average at just over 12 years. For example, Missouri and Oklahoma have only 9% and 19%, respectively, of pastures rated poor or very poor, while Montana and South Dakota have 88% and 81% of pastures rated poor or very poor.Ĭattle cycle length is measured by comparing peak (or trough) cattle inventory to peak (or trough) cattle inventory. The seven states with 50% of the nation’s beef cows that calved in 2020 have varying percentages of pasture conditions rated as poor or very poor. Wisconsin’s pasture condition was rated at 60% good to excellent. Lingering impacts from summer drought has left 63% of Minnesota’s pastures in very poor to poor condition as of September 12. Although September has seen some relief for areas of Wisconsin, Minnesota and Iowa, the USDA reported topsoil moisture was at least one-third very short in all midwestern states except Wisconsin, which had only 11% rated as very short. The northern plains and western third of the United States saw increasing drought conditions through August. As the industry prepares for 2022, concerns regarding high feed prices and the impacts on feeder cattle and fed cattle prices remain relevant. Decreasing feeder cattle numbers, coupled with strong consumer demand for beef, has kept feeder cattle prices relatively high given the high feed costs and lower than expected pen space availability. Although the cattle market continues to deal with burdensome levels of market-ready finished cattle, strong consumer demand has kept a floor on fat cattle prices. based on lower prices for both 500 and 750-pound steers. In November, the higher prices for the lightweight animals resulted in a lower value of gain of $0.74/lb. Of course, a 500-pound stocker purchased now will not reach 750 pounds for some time. However, March feeder futures price was $134.48 recently and with an expected early March basis of $1.69/cwt for 750-pound steers in Oklahoma suggests a final price of $136.17/cwt., close to the current cash price of $136.03/cwt.This past year saw the beef cattle industry begin to bounce back from the COVID pandemic and the subsequent implications on supply and demand. The implications of current market conditions depends on the current weight of animals and the amount of additional weight added to animals prior to sale.Ĭhanges in the price-weight line have different impacts on stocker margins as reflected in the value of gain. Using a stocker gain of 250 pounds from 500 to 750 pounds, the value of gain in August was $1.02/lb. In October, the value of gain was slightly higher at $1.05/lb. in October before bouncing back to $166.97/cwt in November. The steep rollback most recently does affect the value of limited weight gain for calves. For example, the most recent prices mean that the value of an additional 50 pounds on a 500-pound steer is about $0.50/lb. For producers holding calves after weaning, the low value of gain must be balanced against the value of preconditioning programs and extra weaning time before sale. After posting lows during the winter storm in late October, steer prices for calves and stockers increased sharply in November though prices for steers over 600 pounds have changed little as shown in the blue line in Figure 1. The result is a sharper bend in the price-weight line, with an even steeper price rollback for steers up to 600 pounds.įor cow-calf producers selling calves at weaning, price level is the most important determinant of revenue. The price of 500-pound steers dropped from $165.36/cwt. ![]()
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