Strong Feeder Cattle Sales Boost Feedlot Numbers

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

 

Large feedlot placements for the second consecutive month pushed November feedlot inventories up 1.7 percent year over year.  October feedlot placements were higher by 3.8 percent year over year, enough to push feedlot totals higher but a smaller increase than was expected ahead of the report release. October placements are not expected to cause a major negative reaction and, in fact, may be considered positive with a smaller than expected increase. This follows an October report that included a 6.1 percent year over year increase in September placements that surprised and shocked the industry. October marketings were down 2.5 percent year over year, close to pre-report expectations. 

 

A variety of factors have contributed to the increase in feedlot placements the past two months.  On-going drought has likely encouraged producers in some regions to market calves sooner rather than later this fall.  Additionally, strong U.S. feeder cattle prices and drought in Mexico has resulted in sharp increases in imports of feeder cattle in recent months.  Weekly data for October indicates a 49 percent year over year increase in feeder cattle imports from Mexico.  A substantial portion of increased feeder cattle imports likely moved directly into feedlots.  Finally, the biggest factor may be that producers are simply taking advantage of strong markets to sell feeders now given current market strength.  The recent futures market correction has reduced cash feeder prices for heavy feeder cattle and may have contributed to some fear-based sales.  Despite recent decreases, prices for six-weight and heavier feeder cattle are still 30 to 40 percent higher compared to one year ago.  In Oklahoma auctions, prices for lightweight calves and stockers have not declined and are 50+ percent higher year over year.

 

The increase in feedlot placements the past two months does not, of course, mean that cattle numbers have increased.  The estimated 2023 calf crop is down 1.9 percent from last year in addition to a 2.0 percent decree year over year in 2022.  In total, the calf crop has been getting smaller since 2018 and is down 2.5 million head, a decrease of 6.9 percent in the past five years.  Increased placements represent a change in timing as cattle are pulled forward and means that feedlot marketings and cattle slaughter will be comparatively front-loaded early in 2024.  The year over year increase in September and October placements have added about 200,000 head to feedlot inventories compared to one year ago.  

 

Increased placements now will be offset by reduced placements later.  Total placements in the last six months, built on the recent increase and representing the majority of cattle on feed, are at the highest percentage of July 1 feeder supplies since 2011.  This means that a larger percentage of available feeder supplies have already been placed in feedlots compared to recent years. Feedlot numbers will inevitably come down in the coming months, especially when heifer retention begins.  With overall cattle inventories similar to the 2014 lows, the attached figure shows that average feedlot inventories will likely decrease another 1.0-1.2 million head in the coming months.  

 

 Cattle on Feed

 

Derrell Peel, OSU Extension livestock marketing specialist, explains why bigger feeder cattle numbers are declining from SUNUPTV on November 11, 2023. 

      

 

Nutrition Requirements of the Cowherd 

Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist

 

As we near the winter months and the time of year when feeding harvested forage becomes the norm in Oklahoma, we address the topic of daily nutritional requirements of the cowherd.  Grazing and feed expenses account for about 42% – 52% of the input cost of a cow-calf operation.  Knowing the nutritional needs of our cows helps us cost effectively meet their needs. Over feeding or underfeeding both rob the profit potential from cow-calf operations. During the normal production cycle cows should gain some weight/body condition during the dry stages and lose some weight/body condition while nursing a calf. With that in mind, having cows at a BCS 5 – 6 going into calving season is optimum. This means that cows are in good shape and have ample energy reserves to draw upon when the “spike” in Crude Protein (CP) and energy (TDN) requirements occur post-calving as the cow begins lactation. Cows need to be in good shape at the beginning of calving season to reduce the rebreeding interval and stay on schedule to breed, calve and raise a calf to weaning each 12 months. 

 

Assuming we have an ample supply of good quality water and an adequate vitamin/mineral supplementation program, the two primary nutritional requirements of cows are CP and TDN. In normal weather, there are three primary influences on the daily requirements of both:

 

1.  Mature Weight 
2. Level of Milk Production
3. Stage of Production

 

Where cows are now in the production cycle and when they will start calving should be considered when making management decisions regarding feeding. The example below follows a 1,300 pound cow through a normal production cycle during the middle trimester of pregnancy, the final trimester of pregnancy, and the first 90 days post-calving based on her level of milk production.

 

During the middle third of pregnancy, the 1,300 pound mature cow needs:

• CP = 1.64 pounds per day
• TDN = 11 pounds per day
   

The same 1,300 pound cow in the final third of pregnancy needs:

• CP = 1.84 pounds per day
• TDN = 13.3 pounds per day

 

The increased nutritional needs reflect not only the cow’s maintenance requirements but also the increased growth and development of the fetus as calving draws near.

 

After calving, during the first 90 days of lactation, the same 1,300 pound cow will have increased nutritional requirements based on how much milk she is producing:

If giving 25 pounds of milk per day at peak lactation, she will need:

• CP = 3.4 pounds per day
• TDN = 19.3 pounds per day
   

If giving 35 pounds of milk per day, she will need:

• CP = 4.2 pounds per day
• TDN = 22.2 pounds per day

 

In summary, the same cow has a dramatic rise and fall in protein and energy needs over the normal production cycle. Knowing these requirements is essential to cost effective feeding of the cow herd. Managing our nutritional program correctly plays a huge role in reproductive performance. More details about nutritional requirements of beef cows can be found in the fact sheet referenced below.

 

Reference: Nutritional Requirements of Beef Cattle. OSU Cooperative Extension Fact Sheet E-974

 

Mark Johnson, OSU Extension beef cattle breeding specialist, says beef for Thanksgiving is always a good choice on SUNUPTV from November 20, 2023. 

 

 

Grazing Corn Residue to Reduce Winter Feed Costs

Paul Beck, Oklahoma State University Extension Beef Cattle Nutrition Specialist

 

Corn cropping acres has increased in Oklahoma from 88,000 acres harvested in 1990 to 240,000 acres harvested in 2000 and 300,000 acres harvested in 2020. Meanwhile, we have seen wheat harvested for grain decrease from 6.7 million acres in 1990 to 2.7 million acres in 2020. It is not uncommon to see the most productive crop fields planted to corn in all areas of the state.

 

Feed costs account for over 60% of production costs in cow-calf enterprises and much of that is associated with maintaining cows during the winter. In the Midwest it is likely you will see cows grazing corn stalks and milo stubble after harvest, while we often see cattle on wheat pastures through the winter, grazing crop residue is not as common in the Southern Plains. Integrating crop and livestock production when corn residue is available has potential to lower feed costs for cow-calf operations. Researchers at the University of Illinois recently published research (Lehman et al., 2021; Applied Animal Science 37(5):654-663.) evaluating the nutritive characteristics of corn plant residue and beef cattle performance after grazing. They also examined the effects of grazing on subsequent corn yields. 

 

Plane of nutrition of cows decreases over time when given continuous access to corn residue. This is because cows select the highest quality parts of the corn residue first (corn leaf and grain before stalks etc.). When using grazing management such as strip grazing, access is restricted to the rest of the field thus preserving the highest quality components of the residue and stabilizing the cow’s plane of nutrition over time. This can lead to increased body weight after grazing for cows managed with strip grazing compared with cows managed with continuous grazing. 

 

Comparing the grazed fields with the un-grazed fields, it was found that grazing did not affect subsequent corn yield. The researchers, however, found that yield differed between the strips in the strip-grazed treatment, in which the strip with an increased amount of cattle traffic due to the location of the mineral feeders and water troughs had reduced yield. As corn production becomes more common in Oklahoma, grazing corn and other crop residues can have a positive impact by reducing winter feed costs of cows and providing economic incentives to integrating livestock and cropping enterprises.

 

See Dr. Mary Drewnoski, from University of Nebraska, discuss feeding corn stalks, milo stalks and soybean hay on an OSU Rancher’s Thursday Lunchtime Webinar from November 17, 2022.