You’re invited, register today!
The University of Kentucky Agricultural Economics Department is partnering with the Kentucky Beef Network to offer a virtual Backgrounder/Stocker Profitability Conference over three consecutive evenings beginning on March 22, 2022. Each session will begin at 7:00 pm Eastern time and run until 8:30 or 9:00 p.m. and Ohio and other neighboring state’s cattlemen are invited to participate.
Find more details for each session, and registration information linked here.
– Dr. Andrew Griffith, Assistant Professor, Department of Agricultural and Resource Economics, University of Tennessee
I was asked this week how the beef cutout price was calculated?
The boxed beef cutout value is a value USDA calculates to represent the gross value of a beef carcass based on prices paid for individual beef items derived from the carcass. Thus, USDA estimates what percentage of the carcass eat cut comprises and then uses actual prices paid for those cuts to make a weighted average price which is the boxed beef cutout price.
– Josh Maples, Assistant Professor & Extension Economist, Department of Agricultural Economics, Mississippi State University
The Russian invasion of Ukraine has led to far-reaching impacts on commodity markets across the globe. In particular, oil and grain prices have surged which contributes to increases in the cost of production throughout the cattle and beef supply chain. Feeder cattle futures prices have dropped roughly $10 per CWT since mid-February depending on contract (though prices were higher in today’s trading).
Near term corn prices have jumped by around a dollar per bushel in the past few weeks. Shown in the chart above, the May 2022 CME corn futures contract closed last week near $7.50 per bushel. Higher corn prices generally put pressure on feeder cattle prices since feeder cattle and corn are two primary inputs into producing fed cattle. Contracts expiring further in the future have also Continue reading Cattle Input Prices Surge
– Brenda Boetel, Professor, Department of Agricultural Economics, University of Wisconsin-River Falls
Last week, Elliott Dennis discussed the relationship between corn price and feeder cattle placement weights and the likelihood that the industry will continue to place lighter weight cattle while corn prices remain high. When cattle are placed on feed at lighter weights, they tend to finish at lighter weight, which typically reduces the percentage of cattle grading Choice. As the industry adjusts to high corn prices what will happen to the Choice/Select spread?
Over a 12-month time period, the Choice/Select spread is typically narrowest in the January to March timeframe as the demand for Choice graded middle meats is at its lowest and the supply of Choice graded cattle is typically at its highest. In contrast, as we go into summer, the demand for Choice graded middle meats is higher as retailers fill shelves in anticipation of the grilling season, but the supply of Choice graded cattle is lower as we see more calf-fed cattle being harvested. The percentage of lightweight animals (<700 pounds) placed on feed is Continue reading Choice/Select Spread
– Stan Smith, OSU Extension PA, Fairfield County (originally published in The Ohio Cattleman)
This is a common appearance for winter feeding areas in Ohio
Ohio’s roads and highways aren’t the only things that have suffered from a winter that’s alternated between sub-freezing temperatures, and abundant rainfall on top of already saturated surfaces. As spring quickly approaches, pastures and paddocks that served as cattle feeding areas this winter are a sea of pocked up mud. While road crews will be out repairing damaged roads by tamping cold patch into the potholes, it’s simply not that easy to repair soils that are expected to support life in the form of growing plants during the coming months.
That said, a key decision many face regards whether or not reseeding these pasture paddocks that suffered from Mother Nature’s abuse this winter is the most efficient option to get these areas back into productive forage? Let’s look at some options and management strategies that might be considered.
One low-cost option, at least in terms of out-of-pocket expense, is to do nothing. In the absence of Continue reading Plan Now for Improving “Winter” Damaged Pastures
Christine Gelley, Agriculture and Natural Resources Educator, Noble County OSU Extension
If you experienced anything like this, you likely have litter across your fields.
One of the many challenges of flooded conditions is dealing with the garbage that is often swept into crop fields and pastures along with the water. It certainly is frustrating to watch the water recede and leave a trail of litter tangled in crop residue and fence lines. As disheartening and downright gross it is to walk the trail and gather other people’s garbage, it is important to make sure litter is removed promptly to prevent further issues at a later time.
Along with being unsightly, this litter may be accidentally ingested by livestock if it is baled in hay or harvested with grain and can cause damages to equipment if it becomes entangled. Ingested metals and plastics can lead to a variety of digestive problems that can cause chronic struggles, acute illness, and/or death. Animals that have a digestive obstruction may waste away before the mystery of why is solved. Managers may notice that the animal is behaving oddly. They will often go off feed, have watery stool, and gradually lose body condition, but rarely show signs of an infection.
Ultrasounds may reveal the issue, but not always. Contents of the digestive tract can be difficult to distinguish on an ultrasound, depending on the material. Metal objects (which can cause hardware disease) or intestinal twisting may be obvious, but contaminants like plastic or Styrofoam are Continue reading A Flood of Litter
– Victor Shelton, Retired NRCS Agronomist/Grazing Specialist
Having enough clover, especially this year, is important!
I’m writing this the last full week in February. We are about a month away from spring which officially starts on March 20th because there is a minute more daylight than night than the day before. Probably more importantly, we’re at least twice that many days before spring grazing. With that said, a few bulls just threw dirt back with their front hoof, the cows produced a low harmonious bellow in objection, and the old ewes just mournfully bleated in total disgust. That just can’t be right!
Now don’t get your switch in a knot. There are a few exceptions to my estimated spring grazing timeline. Certainly, if you have any stockpiled forage left from the previous season, that is game. To have decent quality at this time, it had to be good stockpile from last fall with adequate nitrogen present and is likely tall fescue which holds its value better over winter than other grasses.
During this time of year, you absolutely want to make sure that Continue reading When do I start grazing?
On February 9, 2022, OSU Extension Beef Specialist Dr. Steve Boyles was guest presenter for the beef subgroup of Cornell Cooperative Extension Livestock Program Work Team. Dr. Boyles focused his presentation on strategies for efficiently feeding beef cows during their third trimester of gestation. That presentation in its entirety can be found linked here.
– James Mitchell, Livestock Marketing Specialist, University of Arkansas
The latest Cattle on Feed report was released last Friday and included a February 1, 2022 cattle on feed inventory of 12.2 million head. All of the estimates from last week’s report were within the range of pre-report expectations (on feed, placements, and marketings). While there were no major surprises last Friday, February’s cattle on feed total was a record high.
The industry continues to make progress working through large cattle supplies. However, the historical 12-month moving average for cattle on feed inventories shows that cattle numbers are still considerably higher by historical standards (Figure 2 below). In 2021, cattle on feed inventories averaged 11.7 million head, a 1% increase from Continue reading February Cattle on Feed Update
– Dr. Andrew Griffith, Assistant Professor, Department of Agricultural and Resource Economics, University of Tennessee
FED CATTLE
Fed cattle traded $1 higher compared to last week on a live basis. Prices on a live basis primarily ranged from $142 to $144 while dressed prices were mainly $226 to $227.
The 5-area weighted average prices thru Thursday were $143.40 live, up $1.15 compared to last week and $227.02 dressed, up $0.92 from a week ago. A year ago, prices were $114.12 live and $181.69 dressed.
Live cattle futures rebounded on Friday after a tough Thursday following the news out of Eastern Europe and Asia. Despite the unrest in global economies, basic supply and demand will continue to push cattle prices to appropriate levels. Packers need cattle to fill line space to meet beef contracts, and cattle feeders need to move fed cattle and refill pens with feeder cattle. It is certainly amazing how basic economics wins when given time to react. Finished cattle prices should continue to be supported as the market moves toward spring. The market may be pressured slightly with Continue reading Weekly Livestock Comments for February 25, 2022