Cattle Prices March Higher…and Higher

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

 

Feeder cattle prices have increased sharply in 2023.  Figure 1 shows the increase in Oklahoma combined auction feeder prices that started in late 2022.  In the last four weeks, prices for lightweight calves and stockers under 600 pounds have averaged about 45 percent higher year over year, with heavier feeder cattle prices up slightly less, from 37 to 40 percent over last year. 

 

Cattle prices are trending higher in response to ever tightening cattle and beef supply fundamentals.  The beef cow herd on January 1, 2023 was the lowest since 1962 and is still getting smaller.  The projected 2023 U.S. calf crop is 2.5 million head smaller than the recent peak in 2018 and leads to an estimated July 1 feeder cattle supply down 3.6 percent year over year and the smallest since 2017.   Feedlot inventories have been smaller year over year since September 2022.  Cattle slaughter is down 3.9 percent so far this year, leading to a 4.9 percent year over year decrease in beef production for the year to date. 

 

Figure 1. Medium and large #1 feeder steer prices, Oklahoma Weekly, 2022-2023.

 

Feeder cattle prices have reached record levels or are rapidly approaching record levels.  Table 1 shows record weekly Oklahoma steer and heifer prices by weight group.  As seen in the table, all feeder steer and heifer prices for animals over 600 pounds are already at new record levels.  Prices for lightweight feeders are expected to reach new record levels in the coming weeks and months. Table 1 will soon be out of date as feeder cattle prices are expected to continue moving higher.   

 

Table 1.  Oklahoma Combined Auction Prices for Steers and Heifers, Record Weekly Prices and Dates as of September 1, 2023*

 

Measure, Quantify and Document

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

 

I frequently remind students that Animal Science is a math based degree. By that same token, production agriculture in general, and specifically beef production is a math based enterprise. Why? Because the only way to make sound management decisions which will impact future profit potential is based on facts arrived at by mathematical analysis. Management decisions based on emotions and/or tradition seldom lead to the financial outcome we desire. 

 

Efficiency can be defined as the ability to achieve an end goal with little or no waste of effort or inputs. Being efficient means achieving results by utilizing the resources you have in the best possible way. Bottomline: something is efficient when we produce more from less and all processes are optimized. This includes the use of money, human capital, production equipment, land and energy.

 

The definition leads to several questions which cow-calf operations should answer:

 

What is my goal? If your goal is living on a ranch as a way of life or ownership of cattle is a family tradition that you enjoy regardless of profitability, this article may not pertain to your operation. If your goal is maximizing profit potential, consider the following. You need to define your goal and identify the purpose of your operation in order to determine the most efficient way to achieve it.

 

What resources are available and at your disposal? Resources available include land (forages and soil), cattle, equipment, capital to invest and how much time and management expertise you have available to commit to your cattle enterprise. Be specific when listing these resources. For example: all quarter sections of grass are not equal. Does your quarter section include Bermuda grass or native range plants? Is there wheat acreage included? If you have improved grasses (like Bermuda) do you live in an area of high annual rainfall or low annual rainfall? Have you tested to determine the soil pH, N, P & K levels? Keep in mind your customers are a valuable resource. Feedback from customers is essential information which can be used to improve your product. This feedback can lead you to better decisions about improving your management or your genetics. This feedback (in the form of data documenting cattle health, growth, carcass merit and yield) can be used to better market your cattle in the future. 

 

Be thorough in evaluating your resources. All the resources in your production system interact and are relative to each other in determining production levels, efficiency and profit potential. The potential of each resource needs to measured, quantified and optimized.

 

Planting Wheat when Grazing is the Goal

Paul Beck, Oklahoma State University Extension Beef Nutrition Specialist

 

When wheat is used only for grazing only the desired planting date should be much earlier than when planting wheat for grain production. Profitability of grazing usually depends on providing the earliest pasture for grazing in the fall and winter, so planting dates are often pushed by producers to as early as the end of August or early September.

 

When fields are planted earlier, soil temperatures are higher and soil moisture is usually limiting, therefore…

• Higher soil temperatures limit the length of the emerging shoot (coleoptile) of the plant so planting depth should be very shallow (<1 inch).
• In freshly planted clean-till fields hard rains can cause the seed bed to crust over hindering emergence of the wheat plant.
• Earlier seeding makes it difficult to control cools season broadleaf and grassy weeds, so rotation of crops or seeding dates becomes necessary to clean up these issues.
• Insect pests, such as grasshoppers and fall army worms, are a bigger issue for early planted wheat, so scouting and control are important.
  
  • Tom Royer with OSU Entomology and Plant Pathology presented Winter Wheat Management for Fall & Winter Pests on Nov, 12, 2020 as part of the Thursday Rancher's Series.
• Seeding rates for early planted wheat are recommended to be higher than later planted wheat at 1.5 to 2 bushels per acre (90 to 120 pounds per acre).

Compared with tilled seedbeds, no-till fields with good residue cover have cooler soil temperatures, improved moisture retention, and less soil crusting potential. The cooler soil temperatures slow seedling emergence for late fall plantings but can be of benefit for early planted wheat. Resent research showed that fall forage production in no-till wheat plantings in mid-August and early September were similar to forage production of clean-tilled fields in early September. When planting was delayed until mid-September, fall forage production in tilled fields was better than in no-till. Stocker calf gains were the same for early planted no-till and clean-tilled fields. When planting dates were delayed no-till fields had later stocking dates and lower calf gains than clean-till fields.

 

There is a lot of give and take when planting wheat and other cool-season annuals for pasture. Each year is different, but when aggressively pursuing the earliest planting dates for maximizing fall forage production, producers must be ready to intervene if crusting occurs and control pests…or replanting may be necessary.

 

OSU Extension Small Grains Specialist, Amanda de Oliveira Silva talks about preparing for wheat planting on SunUp TV from September 5, 2020.