Source: Cow-Calf Corner | March 25, 2019
Spring cattle market roundup
by Derrell S. Peel, Oklahoma State University Extension livestock marketing specialist
The March Cattle on Feed report brings the feedlot data up to date and back on schedule following the federal government shutdown. February feedlot placements were 102.2 percent of last year. This was significantly larger than expected with year over year increases in placements of cattle weighing 800-900 pounds and cattle weighing less than 700 pounds. The February placement total is the largest for the month since 2000. Feedlot marketings in February were 100.5 percent of one year ago, close to pre-report expectations.
The March 1 feedlot inventory was 11.796 million head, 100.7 percent of one year ago and the largest March on-feed inventory since 2008. Over the last twelve months, the average feedlot inventory was 11.529 million head, the largest twelve month moving average since January 2000. The twelve month moving average reached a recent low of 10.375 million head in October 2014 and has increased most months since then. For the last twelve months, feedlot inventories have averaged 11.1 percent higher than the annual average of the October 2014 low.
Although the data are mostly caught up, March weather combined with previous winter conditions continues to create uncertainty about cattle market conditions. The long cold winter has been characterized by persistent and deep snow in some places and wet, sloppy conditions in others. Now floods are devastating large regions along the Mississippi and Missouri river basins with additional flooding expected. The impacts on crop and livestock markets are likely to be felt for many weeks and months to come.
On the crop side, losses of stored grain, hay and other products will have immediate impacts on the producers affected and perhaps on broader markets. Disruptions to transportation may be the biggest impact with truck, rail and river transportation all impacted by the floods and associated damage and likely to be affected for weeks ahead.
Cattle and beef markets are currently impacted with lower fed cattle weights, lost performance and, no doubt, increased animal morbidity and mortality. The timing of the floods are particularly insidious given that it is calving season for many cow-calf operations. This is likely to result in cattle losses even greater than would be expected during floods. It will take many weeks to fully assess the cattle losses due to winter weather and the floods.
Boxed beef cutout values have increased seasonally through the first quarter; boosted no doubt by smaller than expected beef production. Fed (steer and heifer) slaughter is down 0.2 percent year over year thus far in 2019 combining with smaller carcass weights to reduce beef production by 1.4 percent thus far in 2019. In the latest weekly data, steer carcass weights are down 10 pounds year over year and heifers are down 9 pounds compared to the same week one year ago. Thus far in 2019, steer carcasses have averaged 6.4 pounds lower year over year with heifers down 11.2 pounds for the year to date. Fed cattle prices have ground higher seasonally but may see an extended opportunity for a spring peak given the on-going weather impacts.
Feeder cattle markets have generally followed seasonal patterns with calves moving higher since January. Though calf prices typically peak in early April, delayed grass demand may extend the seasonal strength deeper into April. Heavy feeder cattle (over 700 pounds) have been steady to weaker seasonally through March and should begin moving higher towards a late summer price peak. Recent weather impacts are difficult to isolate in feeder cattle markets but are surely reflected in current markets and will be for some time. Calf losses this spring will not really become apparent until fall and may possibly be big enough to affect the overall 2019 calf crop.
Don’t let those heifers slip now!
by Glenn Selk, Oklahoma State University Emeritus Extension animal scientist
As we get closer to April and the breeding season for replacement heifers that are destined for a spring calving herd, proper nutritional management is more important than ever. Some producers may have removed the heifers from wheat pasture at the appearance of first hollow stem. Others may “graze out” the wheat pasture and move the heifers to a dormant native or Bermuda pasture near working facilities for artificial insemination. In some cases this winter the heifers have been fed supplement and hay.
The heifers will be turned in with the bulls or put on a synchronization program to be bred in April. In many cases this means that the heifers must be moved from one location to another that is closer to working facilities. The trick, of course, is to not let those heifers go on a steep downslide in body condition as we approach the breeding season. Research has shown that if heifers (near the time of reaching puberty) undergo a severe reduction in dietary intake of protein and especially energy, breeding success may be disappointing.
Oklahoma State University researchers have studied the impact of short term energy restriction on ovulation rates of cycling replacement heifers. This trial is reported in the 2001 OSU Animal Science Research Report (White, et al.) The effects of acutely restricting nutrition on ovulation and metabolic hormones were evaluated in Angus x Hereford heifers. All of the heifers were housed in individual pens in a barn and fed a diet supplying 120 percent of their maintenance requirements for protein and energy (1.2 M) for 10 days to allow time to adjust to the environment and diet.
All of the heifers were determined to be cycling at the conclusion of this adjustment period. Then the heifers were split into two groups. Half of the heifers were then fed a diet supplying either 40 percent of their maintenance requirements (.4 M). The other half of the heifers were continued on the original diet that supplied 120 percent (1.2 M) of the maintenance requirements. All heifers were injected with prostaglandin so they should ovulate on about day 14 of the trial. Seventy percent (7 of 10) of .4 M heifers did not ovulate as a response to the injection, whereas, all of the 1.2 M heifers had normal ovulation.
In this study, restricting nutrient intake for 14 days prevented ovulation in a large percentage of beef heifers without altering visible body condition. Heifers should be managed to avoid short-term nutrient restriction to maintain normal estrous cycles.