Cattle on Feed, Carcass Weights, Cattle Slaughter and Beef Production

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

 

As of September 15, USDA reported that six percent of Oklahoma winter wheat was planted, compared to ten percent in the five-year average. Dry conditions have continued to delay wheat planting. However, large swaths of the western two-thirds of Oklahoma received some rain in the past few days, supporting more wheat planting. Wheat pasture prospects are delayed, but still possible if planting is completed relatively soon. 

 

The September USDA Cattle on Feed report showed that August placements were 98.6 percent of last year and marketings were 96.4 percent of one year ago. There was one less business day this August, so daily average marketings were actually up fractionally from last year. The September 1 on-feed total was 11.2 million head, 100.6 percent of one year ago. The report was well anticipated and should not cause a market reaction. 

 

Feedlots have maintained inventories slightly higher in the first nine months of 2024, up an average of 0.6 percent compared to one year ago. However, total feedlot placements in the January - August period were down 1.9 percent year over year. The feedlot industry continues to find ways to hold inventory levels despite an ever-smaller feeder cattle supply. Continued heifer feeding is one key to that but increased days on feed is most important this year. The most recent monthly data from the Kansas Focus on Feedlots summary shows average days on feed for steers at 204 days and the current 12 month moving average continues to inch higher at 194 days. Increased days on feed means a slower feedlot turnover rate and helps feedlot maintain the inventory level despite a reduce throughput - feedlot marketings are down 1.0 percent year over year thus far in 2024. 

 

Steer and heifer carcass weights continue to advance sharply this year. Current weekly steer carcass weights are 941 pounds, up 24 pounds year over year. Steer carcass weight shave averaged 23 pounds heavier for the year to date. Heifer carcasses are currently 846 pounds, up 21 pounds from one year ago, with a year-to-date average 19 pounds above last year. Simultaneously, steer slaughter is down a scant 0.3 percent year over year, while heifer slaughter is down 2.3 percent for the year to date. Total fed slaughter is down 1.1 percent in the first 36 weeks of the year, a smaller decrease than previously expected. Higher than expected fed slaughter and sharply higher fed carcass weights put total fed beef production higher by 1.4 percent year over year. This is offset by a 12.9 percent year over year decrease in nonfed beef production resulting in a 1.1 percent year to date decrease in total beef production. Unexpectedly large fed beef production has changed expectations for annual beef production from earlier forecasts of a 4-5 percent year over year decrease to current estimates of a one percent decrease in total beef production. 

 

 

Financial Opportunities of Cull Cow Marketing

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

 

We, as cow-calf producers, typically focus most of our marketing efforts on calves. Accordingly, little marketing effort is put into cull cows and bulls. While pregnancy and culling rates vary between operations; over time, the sale of cull breeding stock accounts for roughly 20 percent of gross revenue in a cow-calf production system. The ebb and flow of the cull cow market has proven to be extremely consistent (and predictable) over time, as shown in the graph below.

 

Figure 1. Cow cull market throughout the year.

 

The seasonal pattern has been consistent for decades. The 20-year average break from the highs of summer to the low in November is 15 percent. Cull prices typically move higher in the early spring before peaking in the summer when strong seasonal grilling activity drives the demand for ground beef. This demand starts to soften in September and is followed by a large supply of spring calving cull cows hitting the market (after weaning and fall pregnancy checks), in October and November resulting in the fall lows. While many spring calving operations simply choose to dispose of culls as quickly and easily as possible, there is considerable potential to increase the salvage value of culls by 25 - 45 percent with some additional effort devoted to marketing and management. Additional value can be gained through added weight, improving the quality classification, and taking advantage of the seasonal price patterns.

 

The summer of 2024 has seen cull cow values reach record high prices. On the supply side, a decline in beef cow slaughter numbers reflects the current cowherd stabilization. Year-to-date, commercial beef cow slaughter is down 16 percent from 2023. From a demand standpoint, consumer preference for ground beef products has been robust even at current prices.

 

For fall calving herds, the seasonal pattern suggests the most profitable option is to market cull cows at the time of weaning/culling in the spring. There is little reason to expect anything different next year as the decreasing cowherd, and small supply of designated replacement heifers this past January, supports strong slaughter cow demand in 2025. 

 

For spring calving operations, this fall represents an opportunity to increase the value of cull cows from the fall lows by retaining ownership into the new year. Improved cull cow marketing offers some of the most reliable return for producers in the uncertain world of cow-calf production. That being said, the cost, moisture conditions and risk of holding onto culls into 2025 must be weighed against the potential of capturing additional value.

 

References

• Cull Cow Grazing and Marketing Opportunities
• CattleFax. Cull Cow Market Update. Matthew McQuagge. September, 2024.

 

 

The Rundown on Ryegrass

Mike Trammel, Oklahoma State University Southeast Area Extension Agronomist

Lately, I have fielded several questions from producers regarding ryegrass. In the south, annual ryegrass is interseeded into over 2 million acres of Bermudagrass or Bahiagrass every year and is grown on as much as a million more acres as an annual forage or cover crop. From the start, let me be clear that we are talking about annual ryegrass and not rye. Though a lot of folks refer to annual ryegrass simply as rye, these are two distinct species. Annual ryegrass (Lolium multiflorum) is dark green with shiny leaves that have smooth edges. Cereal Rye (Secale cereale) is a small grain species that is usually bluer green in color with dull and somewhat waxy leaves. I have also received some questions about perennial ryegrass (Lolium perenne), which is the other major ryegrass forage species. Perennial ryegrass is usually grown in cooler, milder climates of the northern tier of the U.S. It is sometimes called the "Goldilocks" grass, as it prefers places where it doesn't get too hot or too cold, it likes it just right. The ryegrass that is most grown for forage in Oklahoma is annual ryegrass. 

 

Annual ryegrass is adapted to a wide range of conditions. It grows well on soils ranging from poorly drained clays to deep sands. However, production of annual ryegrass on sands is not as great as on heavier textured soils except under higher rainfall. Ryegrass will grow in areas receiving 20 inches of rainfall, but production is much greater in higher rainfall areas. In Oklahoma, the best ryegrass production area is east of I-35. However, annual ryegrass can produce well in many years from southwest Oklahoma north to Kansas in rainfall belts of 25 inches or more. It will also grow on acid soils, although growth is limited when the soil is below a pH of 5.5.

 

Diploid vs. Tetraploid

One of the more common questions I have been asked is what the difference between diploid and tetraploid ryegrass. Annual ryegrass is naturally a diploid species, meaning it carries 2 sets of chromosomes (2n). Plant scientists in the 1930s began experimenting with ryegrass hybrids and discovered mutants that had 4 sets of chromosomes (4n) and were substantially larger plants with wider leaves and stems. Researchers in the Netherlands expanded upon this early work, and ultimately, German plant breeders introduced the first tetraploid varieties into the U.S. in the early 1960s. Plant breeders have since developed many diploid and tetraploid varieties. Because the tetraploid varieties have larger tillers, wider leaves, and are simply bigger plants in general, they are impressive to look at compared to the diploid varieties.

 

Apparently, cattle think so, too. A grazing preference trial in Mississippi showed that forage provided by tetraploid variety plots was consumed 54% faster than diploid varieties. Yet, when researchers there looked at long-term yield data from their variety trial program, the yields of diploid and tetraploid annual ryegrasses were not different in most locations and only tended to give slightly more yield (less than 10%) in their southernmost location (Poplarville, MS). Further, when they conducted a grazing trial comparing diploid and tetraploid varieties, their stocker steers showed no difference in ADG or gain per acre. Their conclusion from all this research is that there is more difference within diploid and tetraploid varieties than there is between them. So, look for a high yielding variety that is recommended for your area and disregard the ploidy level. However, one practical consideration is that tetraploid seed is usually 50 to 100% larger than diploid seed. Though there is no difference in the seeding rate recommendations for the diploid versus tetraploid varieties (20-25 lbs./acre if drilled; 25-30 lbs./acre if broadcasted), it is important to calibrate, check, and adjust the drill to account for these differences in seed size.

 

In Oklahoma, annual ryegrass is usually planted by overseeding warm-season perennial grasses such as bermudagrass to provide grazing earlier in the late winter and spring. Annual ryegrass is also widely planted with small grains to extend the grazing season into late spring or early summer. Given adequate spring moisture and cool temperatures, annual ryegrass will remain productive into late May or mid-June. Annual ryegrass is sometimes planted in mixtures with legumes to provide earlier grazing and reduce the potential of bloat from the legumes. Just remember, when planting annual ryegrass, do your homework. Select a variety that has adequate winter hardiness, good germination, a high purity percentage, and is adapted to your area to better optimize your cool season grazing system. 

 

References

• Annual Ryegrass Performance in Mississippi: Long-Term Yield Production
• Management of Annual Ryegrass

 

 

5 State Beef Conference

Boise City, OK (Cimarron County Fair Building) 

Monday, September 30, 2024: 2:00 PM - 7:00 PM

 

Coldwater, KS (Coldwater Veteran's/City Building, 239 East Main) 

Tuesday, October 1, 2024: 2:00 PM - 7:00 PM

For both locations registration at 1 :30 PM

 

Program

• Market Update
  Glynn Tensor, Kansas State University
• Dairy x Beef: Understanding Feedlot Performance and Carcass Characteristics
  Casey Maxwell, Cactus Feeders
• Optimizing Forage Efficiency: Enhancing Reproductive Performance & Development in Cattle
  Emma Briggs, Kansas State University
• Building Your Beef Herd: How Trace Minerals can improve profitability
  Ddee Haynes, Technical Sale Representative, Axiota® Animal Health
• Research Updates
  • Justin Waggoner, Kansas State University
  • Paul Beck, Oklahoma State University
  • Glenn Duff, Clayton Livestock Research Center, New Mexico State University (only at Basie City)
  • Corey Moffet, USDA/ARS Southern Plains Range Research Station; Woodward, OK (only at Coldwater)

 

Beef Dinner and Proceedings Will Be Provided

 

Registration fee: $20/individual.

Registration Deadline: Monday, September 23

 

For more information about registration, call Kierra Ortega (Cimarron County OK

AG Educator) at (580) 544-3399, Levi Miller (Comanche County, KS) at (620) 582-

2411 or Britt Hicks (OSU Area Livestock Specialist) at (580) 338-7300.

 

 

Livestock & Range Field Day

October 17, 2024

Oklahoma State University

Research Stations

Stillwater, OK

 

 

2024-2025 OQBN Market Partners & Sale Schedule