Cow-Calf Corner | August 14, 2023
Winter Wheat Forage Prospects Better in 2023
In Oklahoma, winter wheat is used for three different crops: wheat for grain only, wheat for forage only, and dual-purpose wheat for grazing and grain. Producers interested in grazing winter wheat for dual-purpose or forage only will be thinking about planting wheat by late August and into early September. Much of the state has better soil moisture and soil temperature conditions for early-planted winter wheat than in recent years. The exception is a few counties along the Red River in the south-central part of the state which have received relatively little rain this summer.
Wheat forage production conditions are only some of the challenges for winter wheat stocker producers. Dynamic cattle and grain market conditions mean that producers will need to carefully and frequently evaluate stocker budget prospects this fall prior to stocker purchase. Calf prices are moving counter-seasonally higher this summer suggesting that stocker purchase costs will continue to increase this fall. The Oklahoma combined auction price for 450-500 pounds Medium/Large #1 steers in the second week of August reached $302.05/cwt., the highest weekly price since June 2015 and just 6.4 percent below the record high of $322.56/cwt. in November 2014.
As cattle numbers continue to tighten this year, the general incentive in the market is to push cattle into feedlots sooner and through the beef production system faster to keep beef production as high as possible. Beef production is down about 4.8 percent year over year thus far in 2023 but is falling more sharply recently, with July beef production down 6.7 percent compared to one year ago. Heifer slaughter decreased more sharply in July, down 5.5 percent year over year and contributing to a 6.1 percent year over year decrease in total yearling (steer + heifer) slaughter for the month. Additionally, beef cow slaughter was down 21.4 percent year over year in July, contributing to the faster pace of declining beef production. In this beef production environment, holding cattle in relatively slow-paced stocker production will be less feasible. However, among stocker production systems, high quality wheat forage produces relatively rapid gains that may still be economical. Careful monitoring of rapidly changing market conditions is essential.
After two years of high feedlot cost of gain, corn prices may moderate with the current crop. December corn futures peaked as high as $6.28/bushel in late June but are currently around $4.85/bushel. Grain markets remain very volatile with summer weather conditions and the feedgrain supply and price for the coming year are uncertain. Still, the prospect of moderating feedlot cost of gain will be a further challenge for stocker producers. Cheaper cost of gain will give feedlots more ability to compete for limited feeder cattle supplies and further enhance the general need to push cattle through the system faster. A lower feedlot cost of gain generally means feedlots can purchase lighter weight feeder cattle and place them in feedlot earlier.
In an environment of limited feeder cattle supplies and lower feedlot cost of gain, the role of stocker production is squeezed more to the very lightweight end of feeder cattle and an incentive to market sooner rather than later with less weight gain prior to feedlot placement. In the short run this general tendency may be partially offset by the strong uptrend in feeder cattle prices. In short, cattle and feed markets are extremely dynamic and require constant evaluation and nimble response to changing conditions.
What Has Value To Your Calf Buyer?
Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist
After addressing last week’s question of retained ownership, this week we look at our calf crop from the standpoint of your buyer. Cattle markets remain robust with the promise of getting even better. Even with that being the case, there is no excuse for leaving $ behind when marketing your calves. Understanding what has value to your calf buyer is key to capturing the most possible $ in the market place.
If I were buying calves, what would I want?
- Uniformity. Calves of similar weight (less than 100 lbs.). Similar age (less than 90 days). Same sex. Similar condition (not too fat, not too thin). Uniformity in quantity adds even more value. Uniform semi-load lots of 50,000 lbs. is best. If this is not possible from your operation alone consider collaborating with other cattlemen to pool calves or investigate the marketing potential of the Oklahoma Quality Beef Network sales (website link below).
- Management. Buyers want calves that are polled or dehorned. Steers that are castrated and heifers that are open. When these conditions are not met, calves will be discounted. Furthermore, calves weaned for 45 days, vaccinated (twice), bunk broke and pre-conditioned have more appeal to buyers and accordingly potentially sell at a premium.
- Genetics. Calves sired by bulls of similar genetics that appear to be from the same cow herd adds to uniformity. Documentation of genetic potential in the form records of past calf crops health, growth and cost of gain, dressing percentage, carcass weight, carcass quality and cutability add potential value.
The weekly price reports we read in Oklahoma and from around the country indicate the value of various ages of cattle when sold as a commodity. That commodity price is based on the above standards being met. The potential to market your calves at a premium to the commodity price exists if you are willing to provide the management to meet these standards, and document the health and genetic potential of your calves. What has value to the buyer of your calves translates to profit potential for you.
Reference
Weaning From a Calf’s Point of View
Paul Vining, Oklahoma Quality Beef Network Program Coordinator
Oklahoma Quality Beef Network (OQBN) Vac-45 sales will continue, beginning in November. Like many certified calf preconditioning programs, the OQBN Vac-45 program requires that calves be weaned a minimum of 45 days before sale. This 45-day period provides calves an opportunity to overcome the stress associated with weaning, bolsters immune function, and provides proper nutrition, allowing for maintained health and performance upon entering the next phase of the beef supply chain.
Weaning stressors include removal from the dam, nutritional changes, a new environment, and altered social structure. These stressors are often referred to collectively as “weaning stress”, however, each is unique and provides its own challenge to calf welfare. Understanding this critical time will allow a better understanding of the importance of a 45-day weaning period.
In cow-calf production systems, it is necessary to wean calves, usually between 6 and 8 months of age to increase cow reproductive performance and herd economic efficiency.
Many cow-calf production systems involve abrupt weaning, in which the calf is transitioned to a new environment away from the dam. While it is a necessary part of life, breaking the maternal bond by removing access to the udder and/or dam is a major stressor for a calf. Some weaning strategies such as fence-line weaning or the use of nose flaps to prevent nursing seek to mitigate stress caused by removal from the dam. While these methods provide the benefit of maintained contact with the dam, research indicates that calves fitted with nose flaps to prevent suckling still exhibit stress-related behavior such as increased vocalization, decreased time playing, and decreased rumination indicating that access to the udder is a critical component of calf contentment.
Calves experience nutritional changes as they transition away from access to milk, which is a protein and energy-dense food source and can account for up to 30% of a six-seven-month-old calf’s caloric intake. Prior to weaning nursing is a calf’s primary source of social interaction is the dam. Following weaning calves must learn to interact with their peers, which leads to brief social stress as each calf seeks to find its place within the group. Calves are usually transitioned to an unfamiliar pasture or dry lot during the weaning process resulting in environmental stress as the calf seeks to orientate to its new surroundings.
A weaning period of 45 days or more ensures calves can cope with weaning stressors and remain healthy. An Iowa State University study found that calves that had been weaned for a minimum of 30 days had a 15% lesser incidence of bovine respiratory disease compared to calves that had been weaned for less than 30 days.
Weaning stress cannot be attributed to a single stressor, but involves multiple stressors including severing the maternal bond, loss of access to the udder, altered diet and available nutrients, social challenges, and environmental changes. A weaning period of at least 45 days, lays the foundation to maintain and improve calf health. Evaluating the weaning period through the eyes of a calf provides understanding regarding this unique period of life.
Dr. Mark Johnson discussed weaning strategies on an OSU SUNUP TV episode from August 21, 2021.
Additional Resources