January Cattle Market Challenges

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

 

The first few weeks of the New Year are always a challenge for cattle and beef markets. Whether it is January marketings of feeder cattle for tax purposes or post-holiday boxed beef pipeline issues, it always takes a couple of weeks to get a bead on cattle and beef markets in the new year. January 2024 has been particularly challenging with multiple winter storms disrupting feeder and fed cattle markets, as well as boxed beef markets.

 

With January 1 falling on a Monday, many Oklahoma auctions did not schedule sales the first week of the month. Most scheduled feeder sales occurred as planned the second week of January, but weather conditions and threats limited market demand and volumes. Most sales were cancelled the third week of January due to severe winter weather in the state. The combined Oklahoma auction report for January 19 showed a total feeder cattle volume of 1,694 head compared to 40,125 head for the same week one year ago. Some major auctions in Oklahoma have only had one sale so far in 2024 and icy conditions on the fourth Monday of January may impact some early week sales once again.

 

Cattle producers have been challenged with extended periods of sub-freezing weather that requires chopping ice and increased cattle feed requirements. Fortunately, most Oklahoma cattle entered the mid-January frigid weather with dry conditions and dry hair coats, which avoids some of the worst animal impacts. Some regions south and east of Oklahoma were not as lucky with rain preceding the freezing temperatures. It is also fortunate that the majority of cow-calf producers were not yet into the spring calving season. The forecast for late January is above-freezing temperatures but still cold and rainy which adversely impacts cattle.

 

Feedlots have been impacted by several winter storms starting with a storm in the central and northern plains after Christmas and another major storm in early January. Fed cattle performance is reduced and will be impacted for several weeks after storms. Fed cattle carcass weights are expected to decrease in the coming weeks as a result.

 

Boxed beef markets decreased the first week of January as retailers assessed holiday markets and sorted out post-holiday beef pipelines. However, the winter weather suspended some packing operations for a couple of days and boxed beef markets jumped in response to supply disruptions. From January 4 to January 17, Choice boxed beef price increased over $22/cwt. The current Choice boxed beef price is roughly $295/cwt. It will likely take another week or two to sort out both demand and supply conditions assuming no additional major disruptions.

 

The January Cattle on Feed report had no surprises with placements 96 percent of last year and marketings 99 percent of one year ago. The January 1 on-feed inventory was 102 percent of last year. The quarterly breakdown of steers and heifers in feedlots showed that the number of heifers on feed was the highest January 1 total in the data back to 1994.

 

 

What's a Good Bull Worth in 2024?

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

 

The spring bull buying season is here it's time to revisit the age old question. The question has been asked forever, or at least as long as we have been breeding cattle with a notion of trying to make the next generation better. It is a classic and timeless question. It is an important question. At this time of year, when many bulls are being marketed and we are planning ahead for spring breeding season, it is a question that is asked a lot!

 

The Answer
I remember first hearing the answer nearly 40 years ago as a student at OSU. "A good bull is worth the value of five calves he sires." I've heard that answer again many times over the years. It is a good answer and a good rule of thumb to follow, the problem is it doesn't exactly narrow down the range. If we do a little "cowboy math," this answer may in fact lead to more questions. Such as .........

 

What is considered a "Good Bull"?

For this discussion, qualifications to meet "Good Bull" status are:

• A bull that sells with a registration paper which includes pedigree information and a complete set of genetic values (including EPDs and Bio-economic indices) to be considered in the selection process. * A bull that has passed a Breeding Soundness Exam (BSE) and selling with a breeding soundness warranty (terms will vary).

When are we marketing our Calves? What is their Value?

521 lb. weaned steer calves (Large, 1) are worth about $2.96/lb. for a value of approximately $1,542 per head. Therefore, if my future marketing plan is to sell weaned steers, $1,542 x 5 = $7,710 is the answer.

 

910 lb. yearling steers (Large, 1) are worth about $2.09/lb. for a value of $1,902 per head. Therefore, if my future marketing plan is to sell yearling steers, $1,902 x 5 = $9,510 is the answer.

 

1,400 lb. finished beef steers are worth $172.50/cwt live for a value of $2,415 each. Therefore, if my future marketing plan is to retain ownership through finishing and sell fed cattle on a live weight basis, $2,415 x 5 = $12,075 is the answer.

 

So, in the current market, a good bull is worth somewhere between $7,710 - $12,075 to a commercial cattle operation. Where exactly in that range depends on your marketing plan and the market conditions at that time. Not an exact number because there are many variables in play. One key point illustrated here is that the longer you own the offspring before marketing, the greater the value of the bull to your operation. Retained ownership gives you more time and opportunity to capture the value of your investment in genetics. It is noteworthy that we haven't considered the value added to replacement females if we select daughters as our next generation of cows. Bulls used to sire the next generation of cows have a greater long-term economic impact on the profit potential of your operation.

 

I encourage cow-calf operations to consider their production system and marketing plan. Doing so should dictate where to apply selection pressure. Genetic values pay when you purchase bulls capable of improving genetic potential for the specific traits that will translate to added value at your intended marketing endpoint.

 

Keep the following chart in mind as another way to evaluate ownership cost of bulls on a per calf sired basis.

 

Table 1. Bull purchase price in comparison to cost per calf assuming 150 calves sired over duration of time as herd bull.

 

Mark Johnson, OSU Extension beef cattle breeding specialist, discusses the worth of a good bull on SunUpTV from March 4, 2023.

 

 

Cold Weather Calves

Rosslyn Biggs, DVM, Oklahoma State University Extension Beef Cattle Specialist

 

When the weather becomes severe, calving becomes much more challenging. Calves born in extreme cold quickly utilize all body fat reserves and exposure to wind can exacerbate temperatures. Preparing in advance of inclement weather can lead to improved calf survival.

 

Remember to discuss your calving plan with your veterinarian and communicate well before there is a calving issue. Your veterinarian can also help you develop essentials for a calving kit.

 

Items to consider in your calving kit may include:

• Veterinary emergency number in cell phone

• Catch pen and functional chute

• Breeding dates and due dates with associated sire

• Calving book

• Flashlights with batteries

• Eartags with marker

• Tag applicator

• Iodine for navel

• 5-gallon bucket

• Calf puller in working order

• Obstetrical chains and handles

• Calf sled

• Syringes and needles

• Exam and obstetrical gloves

• Obstetrical lube

• Clean towels

• Straw or hay for bedding

• Thermometer

• Esophageal feeder

• Colostrum or colostrum replacer (not a colostrum supplement) Medications prescribed by your veterinarian such as pain medications and antimicrobials Halter

• Lariat

• Sorting stick

• Large trash bags

• Disinfectants

 

Assess body temperature if a calf appears stressed. The best way to monitor a calf's temperature is with a rectal thermometer. Inexpensive digital thermometers work well and make it easy to evaluate progress when rewarming a calf.

 

If a calf's temperature falls below 100 degrees F, interventions are needed. Bring the calf indoors and out of the elements if needed. Bedding can be provided and should be deep enough to cover the calf's legs. Empty plastic soda bottles can be filled with hot water and placed near the calf. When used appropriately, warm water baths, blankets, calf jackets, and warming boxes are all options to rewarm a calf.

 

Be careful not to damage the skin of the calf by either rubbing too vigorously or placing them too close to heaters. Additionally, do not to wash off the odor of amniotic fluid. This helps prevent rejection by the cow. Warm oral or intravenous fluids as advised by a veterinarian can also make a big difference but should be used with caution in calves without a suckle reflex. Once a calf is warm and has been fed colostrum, return it to its mother. Colostrum should be received within the first 6 hours of life.

 

Dr. Rosslyn Biggs explains what producers can do to rehabilitate cold stressed calves from March 2, 2020 on SunUpTV.

 

Upcoming Extension Opportunities

Paul Beck, Oklahoma State University Extension Beef Cattle Specialist

 

We have some excellent Extension events coming soon to help keep everyone updated on current technologies, management, and economic conditions throughout the region.

 

The Oklahoma State University Beef Cattle Extension team has announced a Rancher's Thursday Lunchtime Webinar Series "Successful Timed AI Programs in Commercial Cow Herds" beginning on February 8th meeting weekly through February 22nd. These free Zoom webinar sessions are scheduled for Thursdays at noon. The sessions on February 8 and 15 feature Dr. Guillermo de Nava who operates a highly efficient and innovative breeding program in Uruguay with the ability to artificially inseminate hundreds of cows per day. The final session on February 22nd features Dr. Richard Prather, who will talk about his successes in using timed AI programs in commercial herds in northwest Oklahoma. Register for this event at: Rancher's Thursday Lunchtime Series Webinar Registration. For more details visit: OSU Beef Extension.

 

The Cooperative Extension Service from Kansas State University, Oklahoma State University, University of Missouri, and University of Arkansas are providing a joint conference in Missouri and Oklahoma titled the KOMA Beef Cattle Conference located at the MU Southwest Research Extension and Education Center (14548 State Rd H, Mount Vernon, MO 65712) on February 12 and on February 13th at the Donald W. Reynolds Community Center (105 Reynolds Ave. Poteau, OK 74953).

 

"This year's conference will update the public on recent research from the 4 universities in cattle feeding, supplementation, reproduction, and grazing management," says Patrick Davis MU Extension Regional Livestock Field Specialist. These presentations will be given by university agricultural graduate students and professors. In addition, there will be a keynote presentation given by James Mitchell who is an extension livestock economist with the University of Arkansas Division of Agriculture. A catered lunch will be provided by MERCK Animal Health, snacks and drinks will be provided throughout the day.

 

To attend the event, register and pay the fee prior to February 8th. Fee for the event is $20 per person. No refunds for cancellations after the registration deadline. For the Mt Vernon, Missouri site register online at KOMA Beef Cattle Conference . To attend at the Poteau, Oklahoma site register by February 7th LeFlore County Extension KOMA Cattle Conference Form or email Liana Jones County Extension Ag Educator at Liana Jones.