June Heats Up...and Not Just the Weather

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

 

Summer temperatures are not the only thing heating up as we move into June. Beef and cattle markets are rising in recent weeks as well. Tighter supplies of beef and cattle are dominating market fundamentals and will continue to do so.

 

Choice boxed beef prices finished last week at $309.93/cwt., up $6/cwt. from the Friday before Memorial Day. Boxed beef prices had previously peaked in late April but decreased through May with holiday buying completed. The increase in Choice boxed beef prices into June suggests that post-Memorial Day beef demand remains strong. With few exceptions, wholesale beef cut prices are higher year over year and the Choice boxed beef price is 14.8 percent higher than this time last year.

 

Beef supplies continue to tighten with beef production down year over year every week this year except one week in January. For the first 20 weeks of the year, beef production is down 4.8 percent year over year. Total cattle slaughter is down 2.8 percent so far this year compared to last year, with fed slaughter down 2.4 percent and total cow slaughter down 4.1 percent year over year. However, heifer slaughter remains 0.6 percent higher year over year for the year to date and total female (heifer plus cow) slaughter so far this year accounts for 52.4 percent of total cattle slaughter. Beef cow slaughter is down 11.2 percent thus far in 2023 but is partially offset by a 4.7 percent increase for the year to date in dairy cow slaughter. Steer carcass weights have averaged 12.8 pounds lighter year over year, while heifer carcasses are averaging 15.2 pounds lighter this year. Cow carcass weights are lighter this year by 9.8 pounds on average.

 

Cash fed cattle prices traded higher last week with an average live price of $181.26/cwt., including some high-grading cattle trading as high as $190/cwt. late in the week. Fed prices decreased some after the early April peaks in an apparent seasonal decline but are now moving counter-seasonally higher.

Feeder cattle prices continue a strong uptrend with prices for lightweight stocker calves advancing the most. Oklahoma auction prices for 400-pound steers, Medium/Large #1, averaged $309.70/cwt. for the week ending June 2. All steers below 925 pounds were priced over $200/cwt. Steer prices are higher year over year by over 54 percent for animals under 600 pounds and nearly 40 percent higher for those over 600 pounds. Medium/Large, #1 heifers up to 750 pounds, also brought more than $200/cwt. Slaughter cow prices ranged from $114.93/cwt. for high dressing Breaking cows to $85.30/cwt. for low dressing Lean cows. The price for average dressing Boning cows was $103.16/cwt.

 

Recent improvement in drought conditions increases the odds that heifer retention will begin in earnest in the second half of the year. Increased heifer retention, combined with reduced cow culling will increasingly squeeze cattle slaughter for the remainder of the year and into 2024 and beyond.

 

Derrell Peel, OSU Extension livestock marketing specialist, discusses recent rains and how they may impact herd rebuilding. He says though pastures are looking green in drought-stricken areas, more rain is needed for better grazing prospects on SUNUPTV from May 27, 2023.

 

Will It Be Profitable to Creep Feed in 2023?

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

 

This week we revisit the question of the profitability of creep feeding. As a general rule of thumb, in most circumstances involving a commercial cow/calf operation, creep feeding is not cost effective. That being said, managing your cattle operation as a business enterprise should always be based economics. Evaluating the current cost of inputs versus the value those inputs create is the only logical way to accurately assess profit potential. In the case of creep feeding versus profitability this gets interesting because:

• Creep feeding can increase weaning weights from 20 - 80 pounds but typically the value of added weight gain will not cover the added feed, labor and equipment needed unless feed is exceptionally inexpensive and (or) when value of added weight gain is exceptionally high.
• It is worth noting that currently, feed is relatively expensive AND the value of added weight gain is exceptionally high.
• In a summary of 31 experiments where calves had unlimited access to creep feed, average increased calf weaning weight was 58 pounds. Average creep feed conversion was nine pounds of additional feed to one pound of added calf weight gain.
• Conversion efficiency can range from 3 to 20 pounds of feed required per pound of added weight gain. High-quality, abundant forage results in very poor feed conversion because one high-quality feed (forage) is being replaced by another. Similarly, the greater the plane of maternal nutrition, the poorer the conversion of creep feed to calf gain. In OSU fall-calving experiments, efficiency of creep feed conversion to calf gain is quite good because native range forage quality is low and cows are in a maintenance to negative energy balance (losing weight). Results have been around 4.5 to 5 pounds creep feed:gain when fall-calving cows are getting around 5 pounds of supplemental feed. However, the more supplement the cow is fed, the poorer the creep feed conversion. Situations that reduce calf nutrient availability improves the efficiency of creep; low milk production, low quality forage, overgrazed pastures and thus low forage availability, drought, fall-calving, etc. Of course, the opposite is true as well. In general, limiting creep intake improves creep feed conversion substantially. This is especially true with low-quality forage and protein-rich creep feeds limited to 2 to 3 pounds of intake per day.
• Flesh condition of calves that are marketed at weaning can lead to discounts. The longer calves are exposed to unlimited creep consumption and the lower the forage quality, the more they want to eat. If calves are fed free choice creep for 90 days or longer, there is a risk of over-conditioning leading to a market discount. On the positive side, if heavy creep-fed calves go straight to the feed yard for finishing, carcass weights and in most studies, marbling scores are improved.
• Heavier weaned calves are worth less $ per pound. Typically prices fall $10 - 20/cwt as calves get heavier.
• Calves prefer milk first, palatable creep feed second, then forage. Therefore, creep feeding does not take pressure off of the cows. Don’t make the assumption that calves consume less milk, and therefore, cows produce less milk and thus have more nutrients available for maternal tissue maintenance or even weight gain. This is simply not true. Most experiments that track cow weight change and calf milk intake show that calves consume all the milk available whether they are fed creep fed or not. Creep feeding simply does not change or improve cow weights or body condition.
• Consider that the intensity of creep feed and forage consumption is elastic and opposite. The lower the quality of the forage, the more creep feed and less forage calves want to consume and vice versa.

 

Producers should make the decision of whether or not to creep based on economics. A simple, quick “Cowboy Math” example based on current economics follows:

 

Assuming a creep ration is purchased at $400/ton (or $.20/pound) and calves would convert at 10:1 feed to gain ratio, the cost of adding one pound of weaning weight is $2. At this point in the cattle cycle, the value of weaned calves is expected to be well over $2/pound this fall. Will that margin cover the additional labor, cost of a creep feeder, etc.? What is the current condition of your pasture? Will forage be sparse for your spring born calves from now until weaning?

 

Consider these concepts and the answers to these questions based on your operation. It will help you decide if creep feeding your spring calves offers profit potential this year.

 

Reference

Creep Feeding. Cow-calf Corner. 2021

 

Dr Mark Johnson and Dr David Lalman discuss creep feeding options on SUNUPTV Cow-Calf Corner from July 17, 2021.

 

Oklahoma Cow-Calf Producers Biosecurity Survey Results

Rosslyn Biggs, DVM, OSU State Extension Beef Cattle Veterinarian

 

Infectious diseases are a constant threat for producers. Additionally, industry wide, foreign animal diseases threaten the national herd, the supply chain, and critically important international trade. Biosecurity seeks to prevent diseases before they occur, along with limiting the impact of an outbreak.

 

In early 2022, a group of OSU researchers began looking for ways to better assist producers with biosecurity practices and biosecurity plans and launched a survey to Oklahoma cattlemen.

 

The survey focused on understanding Oklahoma producers’ farm and ranch biosecurity practices. USDA National Agricultural Statistics Service (NASS) administered the survey. Over 1400 responses were received representing a significant percentage of cow-calf producers in the state.

 

The purpose of the survey was to learn how much cow-calf producers know about biosecurity and to learn why some biosecurity practices are more widely adopted than others. Among other questions, the survey asked producers about their individual biosecurity practices, why they do or do not use certain practices, disease knowledge, and if they have a biosecurity plan.

 

Initial results revealed that improvement could be made in many areas. For example, producers were asked the basic question “How familiar are you with this definition of biosecurity?” Of the total respondents, 31% indicated “I have never heard of it.” Only 13% of total participants responded, “I understand biosecurity and have implemented principles of biosecurity on my farm/ranch.”

 

Survey results will be used to evaluate biosecurity practices by adoption rate, barriers to implementation, cost effectiveness, and applicability to cow-calf operations. Future Extension programming will help educate producers and their teams, including veterinarians, on cost effective, easy to implement biosecurity practices. This programming, along with additional survey results, will be shared in the coming months.

 

The impact and value of this project’s results go far beyond just cow-calf producers and veterinarians. Policy leaders and animal health officials need this critical information. This project also benefits other entities in the supply chain including feedlots, meat-packing facilities, processing workers, and beef consumers.

 

The Importance of Hay Moisture

Paul Vining, OSU Department of Animal and Food Sciences Graduate Research Assistant

 

Cutting and bailing hay sometimes becomes a “hurry up and wait” process, while waiting on passing rain showers. Hay should be baled when it has dried to the point of containing approximately 14-18% moisture. Bailing hay that contains elevated moisture may lead to an excessive amount of heat and possibly combustion then fire. Excessive moisture content allows for increased growth of bacteria and fungi. The presence of oxygen causes these microorganisms to go through chemical reactions which release heat. This continuous heat release increases hay bale temperature, which causes a risk of combustion and the possibility of fire. Even when fire is avoided excessive moisture content will cause a substantial loss of dry matter and decrease hay quality.

 

Hay Temperature and Fire Risk

If hay must be baled during unfavorable conditions a hay thermometer (36-inch compost thermometer) is a useful tool for measuring hay bale temperature. If hay reaches an internal temperature of approximately 135ᵒF, it is recommended to remove it from the barn. For these suspect bales, check the temperature twice per day and do not place the bales back inside the barn until the temperature has fallen to at least 120ᵒF.

 

 

Increased Hay Moisture Content Leads to Decreased Hay Quality Elevated hay moisture levels (>18%) will decrease hay quality. Hay bales go through a “sweat” following cutting and baling. During this period heat is generated by the increased activity of microorganisms that consume forage sugar and starch. Increased hay moisture content allows for an increase in microbial activity, leading to greater consumption of forage nutrients and a reduction in forage quality. A study conducted at the University of Kentucky evaluated the daily hay temperature and ambient temperatures of two cuttings of alfalfa. The fall cutting was baled at 20% moisture and the spring cutting was baled at 16% moisture. The spring cutting, baled at 16% moisture slowly increased in temperature for 20 days after baling but never reached 120ᵒF. The fall cutting (20% moisture) spiked to 140ᵒF 3 days after baling and returned to a baseline temperature around day 8. The initial spike in temperature for the fall cutting due to increased moisture content would have caused a reduction in forage quality. Hay does not have to be bone dry to make quality hay without risk of hay fire or heat damage to nutritive quality. Baling excessively dry hay makes bales with low density and contributes to loss of leaves and quality losses. But when moisture is too high, spontaneous heating is problematic for hay quality and risk of hay fires.

 

Reference

Hancock, D.W. 2012. HAY MOISTURE: HOW DRY IS DRY ENOUGH? Hay & Forage Grower. The University of Georgia. https://georgiaforages.caes.uga.eduhttps://georgiaforages.caes.uga.edu/ HFG1306