Oklahoma Calf Prices Jump on Stocker Demand and Smaller Volume

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

 

Calf and stocker prices jumped sharply last week in Oklahoma and across the country.  In Oklahoma, a combination of renewed stocker demand for winter wheat grazing and lower auction volumes pushed calf and stocker prices up.  After auction volumes were higher year over year in September and October, Oklahoma auction volumes have been significantly lower in November.  Some of the reduced volume was due to wet conditions but it likely also reflects smaller available supplies after the early fall run. Volumes are likely to be reduced for the remainder of the year.

 

Figure 1 shows the constellation of feeder prices in Oklahoma auctions including the jump this past week and the change in prices since the seasonally early fall low in September.  Notice that most of the price strength is on the lightweight end of calf and stocker prices.  Heavy feeders have shown little price change, especially this past week.

 

 

Figure 1. Steer Price by Weight

 

Table 1 shows the value of gain using the latest weekly feeder prices for beginning weights ranging from 400 to 650 pounds and ending weights up to 900 pounds.  For example, purchasing a 500-pound steer this week at $322.26/cwt. results in a value of 250 pounds of gain at 750 pounds of $1.16/lb. (based on value of a 750-pound steer at $253.63/cwt.) However, that same steer at 900 pounds (current price $242.92/cwt.), has a value of gain of $1.41/lb. for the entire 400 pounds of gain.  

 

 

These values of gain are based on the current market and will depend on the actual selling price of the feeders.  The example of 250 pounds of gain to 750 pounds could represent winter grazing until March. The current March Feeder Futures price is about $245/cwt. which implies a March Oklahoma cash price of roughly $247/cwt., which is lower than the current price of $253.63/cwt.  Taking the steer to 900 pounds might be looking at a May price with Feeder Futures current at roughly 246/cwt. and implies an Oklahoma cash price of roughly $229/cwt., compared to the current cash price of $242.92.  In both cases, the futures prices are lower than the current market meaning that the value of gain in Table 1 could be overestimated based on current market values. 

 

Derrell Peel, OSU Extension livestock marketing specialist, says the rain may not help much with wheat pasture, but it will help cow-calf operations with available water sources on SunUpTV from November 16, 2024.

 

 

BEEF! It’s What's for Thanksgiving! 

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

 

Thanksgiving is a time when American families come together to celebrate a holiday that connects each and every one of us. While Thanksgiving is observed in varied ways in different nations, in American the holiday is truly rooted in agriculture. We may bring our own flavors and traditions to the table but Thanksgiving is a time for all of us to celebrate our nation’s harvest and ability to efficiently produce food, to express gratitude for our blessings, and look ahead to the future.  

      

I encourage you to make plans to enjoy beef this year at Thanksgiving. Why? Because compared to turkey, or among all the protein sources you may be considering for Thanksgiving dinner, beef holds the advantage. With regard to flavor, beef is generally more interlaced with marbling, the taste fat that translates to a more flavorful and satisfying eating experience. Beef can be aged to further intensify flavor, not an option with poultry products. Beef offers more variety of cuts, all of which result in the same satisfying eating experience. Beef can be served in a variety of “degree of doneness” options relative to what is most satisfying to your palate. Likewise, beef offers more options in the amount of time spent in preparation to better fit your schedule. Turkey requires long-term baking/frying preparation resulting in the option of white meat or dark meat. Consuming beef on Thanksgiving Day has the further advantage of improving the supply and demand equation thereby improving the profit potential of beef production. Because of the variety of advantages offered by beef, please give consideration to the following when planning.

 

1. How much time do you have to spend cooking?
   If your answer is not much, consider grilling or pan frying. Middle meats from the beef carcass like ribeye, strip loin, filet and sirloin steaks are very tender and can be cooked quickly at high temperatures on the grill or stove top to seal in the tenderness, juiciness and flavor. If you intend to grill or pan fry steaks remember to give them adequate time to thaw and reach room temperature before cooking. Burgers made from ground beef are also great when grilled or pan fried. Chicken fried steak using tenderized round steaks can be pan fried. 
   If you have more time to spend in preparation, smoking or oven roasting can result in the same tender, succulent beef flavor. Roasts from the chuck or round can be seasoned and slow cooked to bring out “melt in your mouth” flavor. Beef brisket is ideal for smoking and slow cooking. An intact rib roast can also work great for smoking or slow cooking. 
2. What is your budget?
   Typically steaks or middle meats will be the more expensive cuts to purchase. The cuts that require more cooking time (because they contain more connective tissue) can be purchased at a lower price per pound. Ground beef is also less expensive. Since beef is the preferred protein among most consumers, it will typically cost more per pound in comparison; nevertheless, the variety of options from a beef carcass leads to choices to fit any budget.  

 

More information about cooking methods, recipes and beef cuts can be found at Beef It's What's for Dinner. Regardless of the cut of beef you enjoy this Thanksgiving you will be eating a nutrient dense, delicious source of protein, B vitamins, iron and zinc that is a healthy diet choice. 

 

This year on Thanksgiving, I want to say thanks to America’s farmers, ranchers and everyone in production agriculture that make it possible. Whatever we eat on Thanksgiving Day, it is the ingenuity, perseverance, efficiency, work ethic and “can do” attitude of America’s cattle men and women, and ag producers that permit us to enjoy the highest quality beef produced in the world and spend a relatively small percentage of our income on food.  

 

Thanksgiving in 2024 arrives at a time when we, as cattle producers, have a great deal to be thankful for. Recent rains across Oklahoma have been highly beneficial and dramatically improved the prospects of cool season pastures. Strong cattle prices and historically robust profit potential for cow-calf operations has existed over the past two years. Low cattle inventories indicate strong value of all classes of cattle for the next several years. 

 

Happy Thanksgiving, thanks for reading and remember “BEEF! IT’S WHAT’S FOR THANKSGIVING!”  

 

Mark Johnson, OSU Extension beef cattle breeding specialist, reminds us of another option to consider for Thanksgiving tables from SunUpTV on November 19, 2022.

 

 

A Product that can Reduce Stress at Weaning

Brian Freking, OSU Cooperative Extension Southeast Area Livestock Specialist

 

Have you considered using a product such as maternal bovine appeasing substance (mBAS) aka FerAppease® during weaning.  The management key points listed in the bullet list below for fence line weaning have been fairly broadly accepted as a stress minimizing management technique.  Could cows on the opposite side of the fence still be providing enough appeasing substance (pheromone) to keep calves calmer? 

 

Fence Line Weaning Benefits

• Calves stand next to fence within eye site and smell of cow
• Process shown to range from 48 to 72 hours
• Normal separation ranges from 7-10 days (old system)
• Calves gradually separate via grazing within 48 hours
• Less vocalization

 

Scientists have been investigating reducing stress in cattle for decades.  Current published information shows promise for the use of mBAS.  Journal of Animal Science, 2020, Vol. 98, No. 9, 1-10 provides results from Reinaldo Cooke Texas A&M University providing a detailed project report from this product.  Growth rate from day 0 to 28 was greater (P=0.05) in mBAS versus control calves (2.21 lb/d vs 1.87 lb/d, respectively; SEM = 0.125 ) and did not differ (P=0.23) from day 28 to 42 between treatments.  The key consideration is calves tend to adjust quicker to eating during the stressful first week after weaning. Calves eating routinely coincides with better immunity therefore less of a need for treatment for respiratory complexes. Cortisol concentrations, a biomarker of chronic stress, has been shown to be reduced in calves treated with mBAS.  

 

One common question raised is how long does this product last?  The current recommendation is that it will last approximately 14 days.  Therefore, utilizing this type of technology would require a precondition period of approximately 45 days to see a return on investment (ROI).  As always Read Label Directions but currently it calls for a dosage rate in Adult cattle to be 5 ml to the Nuchal skin and second 5 ml application to the skin above the muzzle.  For calves, apply half the dose on the same locations.  There is no slaughter withdrawal period.

 

Administration of mBAS to beef calves may be a strategy to alleviate some of the physiological and behavioral stress responses elicited by weaning.

 

 

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