Oklahoma Cattle Market Update

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

 

In the 14 weeks from mid-July to mid-October, the volume of feeder cattle in the combined weekly cattle auction summary was up 19.7 percent year over year, an increase of over 66,000 head.  As expected, larger summer volumes resulted in smaller volumes for the fall.  The feeder volume the past two weeks has been down by 6.1 percent compared to the same period last year. Feeder volumes are expected to be smaller through November. 

 

Feeder cattle prices at Oklahoma auctions increased counter-seasonally through the summer to August peaks nearly equal to the spring seasonal peaks before dropping through September into early October.  A sharp decrease in Feeder futures contract prices over this period was the major factor in the cash market decrease. Since mid-October, Feeder futures prices and cash auction have moved higher.  

 

For the week ending October 28, the combined auction price of 480-pound, M/L, No. 1 steers was $190.08/cwt. ($912.38/head) and the price of 781-pound steers was $176.20/cwt. ($1376.12/head).  This is an increase in value of $463.74/head and a $1.56/pound value of gain for 301 pounds of gain.  Of course, it takes time to add weight to feeder cattle and the value of gain is even higher given Feeder futures prices for next spring.  Feeder futures prices reflect a higher trending feeder market in the coming months.  Current March Feeder futures imply a price of $183/cwt. for the 780-pound steer and a value of gain $1.71/pound in March for the 480-pound steer purchased now.  Drought has reduced the availability of wheat pasture and other forages and makes it difficult for stocker producers to take advantage of these attractive stocker margins and arbitrage the markets in the typical fashion.  Some producers may be considering more creative backgrounding programs to take advantage of the current feeder market situation.

 

The volume of cull cows in Oklahoma auctions continues to run well above last year.  The volume of cull cows and bulls in auctions has averaged double the level of one year ago since mid-July and has been higher nearly every week of the year.  This increase has added roughly 50,000 head of cull cows above year ago levels in the seven federally reported Oklahoma auctions.  Other cull cows are marketed through smaller auctions and directly to cow packers. These numbers contribute to the national total of beef cow slaughter up nearly 13 for the year to date through mid-October.  Cull cow prices dropped about 25 percent from late August to mid-October but did increase slightly last week.   Average dressing Breaker cows were priced at $71.99/cwt.; Boning cows at $67.26/cwt. and Lean cows at $60.82/cwt.  

 

Market fundamentals are generally positive for cattle markets going forward.  Improved futures prices, stronger boxed beef and fed cattle prices are all supportive for feeder cattle markets.  Cattle slaughter is still running large but should taper off toward the end of the year.  Unless unexpected external market pressure develops, cattle prices are expected to finish the year strong and the highest prices of the year may be recorded before the end of the year.   

 

Dr. Derrell Peel discusses the effect of recent rains on livestock markets on SunUp TV from October 29, 2022.

 

 

Branding and Vaccination of Fall Born Calves   

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

 

Cool nights, warm days and rain showers sure beat the weather we had this summer. At the same time, those temperature swings can be hard on young cattle.  It is essential to start priming the immune system of fall born calves against common diseases. For September calving herds we are a month from the start of breeding season.  If we haven’t already, now is the time for administering boosters to the cowherd and “branding time” for fall calves. Vaccination programs begun at branding time can reduce disease and death losses. Additionally, this allows the calf to return to its familiar environment, including nursing its dam after the procedures have been completed.  Returning the calf to its familiar environment minimizes some of the stress of handling, allowing the calf to perform more closely to its genetic potential, hence, increase production.

 

Here are basic program considerations to discuss with your vet:

• Individually identify (if not already performed): brand, ear tag 
• Castrate
• Dehorn
• Growth Implants
• Vaccination for Viral respiratory diseases
• Vaccination for Clostridial: 7- or 8-way (Blackleg)
• Parasite control program

These recommendations all have caveats and are region specific. The choice of brand or type of vaccination will depend upon the geographic location of the herd and the amount and type of risk in the population. Additional procedures may be necessary for your herd. If not already done, sit down with your veterinarian to discuss the vaccines and procedures that will result in the best economical return to your operation.

 

Dr. Rosslyn Biggs takes and in depth look at handling and administering vaccines from SunUp TV.

 

 

When Will We be Able to Put Cattle on Winter Pasture this Year?

Paul Beck, Oklahoma State University Extension Beef Nutrition Specialist

 

We finally got enough rain in parts of Oklahoma for our wheat and other cool-season annuals to start emerging. This is extremely late for our normal wheat grazing programs since for a ‘good’ wheat pasture year we expect to turn out the first of November. The late start really limits the prospects for being able to graze cattle on wheat this winter. 

 

Overgrazing and starting too early will limit animal performance and reduce total overall production of these pastures. My normal recommendation is to wait until small grains are 4 to 6 inches tall before turning out cattle on pasture. Using a rule of thumb of about 200 pounds of forage dry matter per inch in height, this should provide us with 800 to 1200 pounds of forage dry matter per acre. This should allow adequate forage for steers to gain 2 pounds per day when stocked at 2 acres per steer.

 

With our late start, can we reach this level of forage growth this winter? 

• Wheat forage grows at 3 to 3.5 pounds of forage dry matter per acre for each growing degree-day. 
• A growing degree day = the average daily temperature - 40◦ F
• The average daily temperature for November in Central Oklahoma is 50◦ F, with 61◦ F average high and 39◦ F average low temperatures.
• Wheat would be expected to produce 30 to 35 pounds of forage dry matter per day this month.
• So, we may be able to start grazing winter pastures in early December this year. 
• Other cool-season annuals (cereal rye and triticale for example) are more productive at lower temperatures, so forage accumulation should be higher.
• This rule of thumb relies on unlimiting soil nutrients and moisture, so unfertilized pastures will not reach these targets and we need to keep getting timely rains.

We can’t rely on much forage production in December and January because the average temperatures are right at or below the 40◦ F threshold, so, we need to be sure to let as much growth accumulate before we turn cattle out as we can. Forecasts indicate we have 33 to 50% chance of having above average temperatures in Oklahoma for the next 3 months. Things may be better than expected. Holding cattle off pastures this fall and managing grazing to produce adequate leaf area for regrowth following grazing, will improve productivity in the later winter and spring. This will shorten our hay feeding season later in the year.

 

Dr. Paul Beck discussed wheat pasture growth and setting stocking rates from SunUp TV.