Nov. 11, 2019
Oklahoma cattle market update
By Derrell S. Peel, Oklahoma State University Extension livestock marketing specialist
The fall calf run is in full swing in Oklahoma. USDA-AMS reports that combined volumes for seven Oklahoma auctions are up 7.0 percent year over year over the past six weeks. Prices for most weight classes of feeder cattle increased last week, suggesting that the last week of October may have been the seasonal low. However, cold weather this week may dampen demand and could pressure prices a bit more as large fall run numbers will likely continue for another couple of weeks.
Wheat pasture has been slower to develop this fall with dry conditions in many regions delaying wheat pasture growth. Rainfall remains limited in western parts of the state with most of the eastern half receiving substantial precipitation in the past two weeks. However, wheat pasture across the state continues to get closer to turn out and there is still considerable interest in winter wheat grazing across Oklahoma.
Table 1. Oklahoma Combined Auction Steer Price and Value Per Head, November 8, 2019
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Weight (lbs.) |
Price ($/cwt.) |
50 lb. Price Change ($/cwt.) |
100 lb. Price Change ($/cwt.) |
250 lb. Price Change ($/cwt.) |
Value ($/head) |
Additional Value of 50 lbs. ($/head) |
400 |
174.18 |
-4.96 |
-12.36 |
-27.16 |
697 |
65 |
450 |
169.22 |
-7.40 |
-15.98 |
-21.97 |
762 |
48 |
500 |
161.82 |
-8.58 |
-13.62 |
-14.36 |
809 |
34 |
550 |
153.24 |
-5.04 |
-6.22 |
-4.98 |
843 |
46 |
600 |
148.20 |
-1.18 |
-0.95 |
-1.54 |
889 |
66 |
650 |
147.02 |
+0.23 |
+0.44 |
-4.33 |
956 |
75 |
700 |
147.25 |
+0.21 |
+1.01 |
|
1031 |
75 |
750 |
147.46 |
+0.80 |
-0.80 |
|
1106 |
80 |
800 |
148.26 |
-1.60 |
-5.57 |
|
1186 |
61 |
850 |
146.66 |
-3.97 |
|
|
1247 |
38 |
900 |
142.69 |
|
|
|
1284 |
|
Table 1 shows current steer prices in Oklahoma. The prices are a typical pattern for this time of year with prices per hundredweight decreasing sharply from 400 to 600 pounds and prices largely unchanged at weights from 600 to 800 pounds. Columns 3, 4 and 5 show the price changes for various amounts of weight change. The current price patterns show that feeder cattle value increases rather slowly across the light weights (column 7) and increase by larger increments at weights above 600 pounds.
The current price patterns suggest marketing considerations for both cow-calf sellers and stocker buyers. For example, the value of additional weight for retained weaned calves depends on the weaning weight of the animals and the amount of additional weight planned. At 450 pounds, the value of 50 pounds of weight gain is only $34/head but the value of 50 additional pounds for a steer weighing 550 pounds at weaning is $46/head. However, under the current price pattern the value per pound of additional weight is higher as more weight is added. Of course, prices at this point in time do not account for prices changes over the time it takes to add additional weight. However, current price patterns provide information about potential value relative to additional costs to add weight.
Stocker buyers may also consider the implications of buying different size animals depending on total weight gain planned over the winter. Four-weight steers are very popular for stockers and sometimes get overpriced at this time of year relative to heavier weight steers. In Table 1, the value of 250 pounds of gain for a 450 pound steer is $269/head while the value of the same amount of gain for a 550 pound steer is $343/head. Of course, profit potential depends on cost of production and expected selling prices.
Prepare now for the spring calving season
By Glenn Selk, Oklahoma State University Emeritus extension animal scientist
Someone once said “that Success occurs when Opportunity meets with Preparation”. Planning and preparing ahead for next spring’s calving season can help increase the chances of success. There are several key preparation steps that would be good to conduct in November or December to insure success in February, March, and April.
Before calving season starts do a walk-through of pens, chutes, and calving stalls. Make sure that all are clean, dry, strong, safe, and functioning correctly. Check the gates and the squeeze panels to make certain that they are ready for use.
Many calving sheds are storage facilities during the off season. Do you have the extra barbed wire and steel posts, as well as grass seed and motor oil stored in the calving shed? Now would be a good time make certain that these items are placed in another facility or at least out of the way. This is a lot easier to do on a sunny afternoon than on a cold dark night when you need to have the calving area ready in a short time.
If calf diarrhea has been a significant issue in your herd in the past, now is a good time to visit with your large animal veterinarian. Ask about a scours vaccine given to the cows before calving, and about other management strategies that help reduce the pathogen exposure to baby calves when they are most vulnerable.
Larger cow calf operations may want to learn about the Sandhills Calving System. This is a calving time strategy that is meant to reduce the incidence of calf diarrhea by keeping cow/calf pairs pastured together by calving date. This system requires several pastures and weekly movement of cows that are yet to calve. The goal is to prevent newborn calves from being exposed to disease-causing organisms being shed by older calves. Several articles have been written about the Sandhills Calving System. Here is a link to one from the University of Nebraska: http://beef.unl.edu/beefreports/symp-2007-17-xx.shtml
Cow-Calf Corner is a weekly newsletter by the Oklahoma Cooperative Extension Agency.