11/28/2023 0 Comments Oklahoma feeder cattle prices![]() ![]() April retail beef prices were once again higher at record levels. only briefly if boxed beef prices hold strong through the summer. However, fed prices may drop below $140/cwt. Fed cattle prices are working lower in May and additional seasonal decreases are expected in June and July. April placements were down five percent from last year, slightly lower than expected. The latest Cattle on Feed report shows May 1 feedlot inventories down one percent year over year, the 21st consecutive month of feedlot inventory decreases. Generally adequate hay supplies are supportive of herd expansion plans in many regions though hay stocks are sharply lower in some drought regions including Texas, New Mexico and California. USDA also released the May hay stocks which confirmed that hay stocks at the end of the hay crop year on May 1 were 19.2 million tons, up 35 percent from 2013 levels. Additionally, corn planting progress accelerated significantly relieving some of the growing concerns about corn production and prices. Conditions remain severe in the Southern Plains and Western regions with 35 to 45 percent of pastures and ranges in poor to very poor condition though both regions are in slightly better condition than this time last year. Conditions are significantly improved in the Great Plains where 21 percent of pastures and ranges are poor to very poor compared to 54 percent last year. ![]() pastures and ranges are rated poor or very poor compared to 33 percent this time last year. Though drought continues and has recently expanded in parts of the Southern Plains, conditions are generally better than last year.Ĭurrently, 22 percent of U.S. Drought redevelopment could lead to early marketing of calves and stockers along with diversion of replacement heifers back into feeder markets. ![]() ![]() The principal factor that could significantly pressure feeder markets going into summer would be a significant redevelopment of drought conditions back into areas of currently improved pasture conditions. However, it is clear that feeder supplies are extremely tight and the feedlot scramble to maintain feedlot inventories will continue. Where do cattle and beef markets go from here? Feeder prices are at a significant premium to fed cattle prices and it seems unlikely that they will continue to increase. However, current boxed beef prices are roughly 17 percent over year ago levels. Boxed beef prices have been extremely volatile and are currently down from rollercoaster highs in January, March and April. Fed cattle prices have decreased slightly from highs in late March but are still about 17 percent over fed prices this time last year. Feeder cattle prices are at a record level by a large margin. steers was $187.32 cwt., up 43 percent for last year. 1 steers was $237.27/cwt., up 46 percent from one year ago. based on lower prices for both 500 and 750-pound steers. In November, the higher prices for the lightweight animals resulted in a lower value of gain of $0.74/lb. Of course, a 500-pound stocker purchased now will not reach 750 pounds for some time. However, March feeder futures price was $134.48 recently and with an expected early March basis of $1.69/cwt for 750-pound steers in Oklahoma suggests a final price of $136.17/cwt., close to the current cash price of $136.03/cwt.Last week, the Oklahoma combined auction price for 450-500 lb., Med/Large, No. The implications of current market conditions depends on the current weight of animals and the amount of additional weight added to animals prior to sale.Ĭhanges in the price-weight line have different impacts on stocker margins as reflected in the value of gain. Using a stocker gain of 250 pounds from 500 to 750 pounds, the value of gain in August was $1.02/lb. In October, the value of gain was slightly higher at $1.05/lb. in October before bouncing back to $166.97/cwt in November. The steep rollback most recently does affect the value of limited weight gain for calves. For example, the most recent prices mean that the value of an additional 50 pounds on a 500-pound steer is about $0.50/lb. For producers holding calves after weaning, the low value of gain must be balanced against the value of preconditioning programs and extra weaning time before sale. After posting lows during the winter storm in late October, steer prices for calves and stockers increased sharply in November though prices for steers over 600 pounds have changed little as shown in the blue line in Figure 1. The result is a sharper bend in the price-weight line, with an even steeper price rollback for steers up to 600 pounds.įor cow-calf producers selling calves at weaning, price level is the most important determinant of revenue. The price of 500-pound steers dropped from $165.36/cwt. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |