Fed Prices Leading Cattle Markets to Record Levels

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

 

The daily 5-Market negotiated cash fed cattle price reported on Thursday, April 6, 2023, by the USDA Agricultural Marketing Service, was $172.33/cwt., a new record daily fed cattle price.  This was followed on Friday with at price of $175.87/cwt.  The previous record daily price was $172.08/cwt. on November 26, 2014. 

 

Where do fed prices go from here?  In a steady market, fed prices would typically peak seasonally about now and move lower through the third quarter before increasing to the end of the year.  This sort of typical pattern is currently priced into the Live Futures with futures prices decreasing from the nearby April (currently just over $171/cwt.) to June (about $163/cwt.) and August ($162/cwt.) before increasing in the October contract ($166/cwt.) and December ($171/cwt.).  At this time, Live Futures prices do not exceed nearby levels until the February 2024 contract (currently $174/cwt.). 

 

Will fed prices follow this typical seasonal pattern this year?  Figure 1 suggests maybe not.  In 2021 and 2022, the strong uptrend in fed prices offset seasonal tendencies, with prices moving continually higher.  There is good reason to expect the uptrend to continue in 2023. The seasonality priced into the markets now may fade as markets trend higher going forward. 

 

Feedlot inventories are just beginning to fall with ever tighter feeder cattle supplies and are likely to continue decreasing at least through 2023, pushing fed prices higher.  Fed prices may increase more slowly or plateau briefly in the summer months but are not likely to have a typical seasonal decline going forward.    

 

 

 

Figure 1. Fed Cattle Price, 5-Market

 

Feeder cattle prices have not yet reached record levels but are advancing to surpass previous price peaks.  Oklahoma combined auction prices for 500–550-pound, Medium/Large No. 1 steer prices for the week ending April 7 were $251.41/cwt., the highest price since August 2015.  The record price for this weight group was $306.42/cwt. on December 12, 2014.  For the heavier feeder cattle, 800-850-pound steer prices averaged $189.53/cwt., the highest price since October 23, 2015.  The highest previous price for these steers was $238.87/cwt. on October 10, 2014.  Feeder cattle prices are currently about 80 percent of the record price levels in late 2014 and will undoubtedly exceed previous high prices at some point in the coming months.    

 

Derrell Peel, OSU Extension livestock marketing specialist, discusses the declining beef production situation, which is beginning to have an impact on wholesale prices.

 

 

2023 Cattlemen’s Conference – Blueprint For The Future

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

 

The 2023 Cattlemen’s Conference – Blueprint For The Future will be held in Stillwater on May 24^thand 25^th.  The program will address a variety of topics that are challenging the beef industry and promises to be informative, exciting and timely.  We have assembled a dynamic group of speakers for this conference.  We will be covering topics relevant to all beef industry segments, consumers, commercial operations and purebred breeders alike.  Our objective is to provide information, stimulate thought and conversation, and quite literally offer a “Blueprint For The Future.”  This conference will meet in-person with a schedule full of nationally renowned speakers and panel discussions. 

 

Topics covered will include:

• Land stewardship for improved soil health and surviving drought
• Information about the end product from the National Beef Audit
• Trends in beef products and consumer demand
• Effectiveness of selection indices
• Impact of genomics and phenotypic data on the prediction of genetic values
• Selection for extremes (muscling, marbling, body depth and late day morbidity)
• Ethics in the showring and in marketing
• Report from competing protein sources
• How consumer and economic trends will influence the beef industry in the future
• Emerging trends and the market outlook
• Keynote speaker Dr. Frank Mitloehner the “greenhouse gas guru”

 

The conference will also include evaluation of live breeding and market cattle.  The panel discussions will allow all in attendance to ask questions of industry experts.  The $200 registration fee covers meals and all parts of the program.  To register for the conference, motel information and to access a detailed conference schedule visit: Cattlemen's Congress

 

 

Genetic Testing Identifies Potential Growth Performance of Finishing Steers

Paul Beck, Oklahoma State University Extension Beef Cattle Nutrition Specialist

 

OSU Department of Animal and Food Sciences and the Oklahoma Cattlemen’s Association are hosting a Beef Finishing Field Day on April 27^th beginning at 10 am at the OSU Totusek Arena and continuing after lunch at the Willard Spark Beef Research Unit. This event is being held in conjunction with the Oklahoma Cattlemen’s Association Steer Carcass Challenge and the Oklahoma Junior Cattlemen’s Association Steer Feedout.

 

Finishing research being conducted at the Spark’s Center will be highlighted. Jacee DeVries, a graduate student in the OSU Department of Animal and Food Sciences, will present research on genetic testing to predict performance. The objective of this study was to determine differences in performance and efficiency of finishing steers with a range of Neogen Igenity Beef scores for average daily gain (ADG) and milk. Angus-sired steer calves weighing 920 pounds were placed on feed at the WSBRC after grazing wheat pasture for 155 days. Steers were grouped based on Igenity ADG Score [low growth (LG) scores 1-4, medium growth (MG) scores 5-6, or high-growth (HG) scores 7-10]. Steers were allocated into pens in heavy and light weight blocks. The genetic test results were not predictive of growth rates during the grazing period. Steers with HG scores consumed more feed during the finishing period, gained weight more rapidly during finishing, weighed more at slaughter, had heavier carcasses, and had higher percentage of carcasses grading USDA Choice than MG and LG steers. According to this data Igenity Beef Index Scores are predictive of growth performance and have the potential to be an effective selection tool.

 

Effect of Genetic Test Results on Performance of Finishing Steers.

 

We are looking forward to hosting you at the Field Day on April 27^th. For more information and to register for the event contact Mariah Reimer.

 

Fed Cattle Field Day Flyer