|
|
Livestock and Forages News Articles
Articles published in Arkansas Cattle Business
Animal Science: Today and Tomorrow - June 2007
Annual Feedlot Update
According to the Kansas State University, 2006 feeding performance for
steers and heifers improved rather modestly over 2005. Average closeouts weights
were much higher in 2006, due to longer days on feed and better average daily
gains. In 2006, the cost of gain for both steers and heifers was well above the
prior year, in response to drastically higher corn and hay costs.
In 2006, the average closeout weight for steers was 1,312 lbs., 25 lbs. heavier
than 2005's and 50 lbs. above the 2001 – 2005 average. Heifers closed out at an
average 1,192 lbs., well above the 1,164 lbs. reported for 2005 and 4 percent
higher than the prior five-year average. Steers were placed at an average weight
of 776 lbs., 17 lbs. less than 2005's while heifer placement weights were up
about 2 percent.
Steers were on feed an average 158 days in 2006 which was 7 days longer than in
2005, while heifers were on feed an average 2 days more at 152 days. Feedlots
reported an average daily gain for steers at 3.40 lbs. per day vs. 3.33 lbs. and
3.05 lbs. per day for heifers which was about 2 percent higher than 2005's.
Steers required an average 5.95 lbs. of feed, down from the 6.10-pound average
for 2005, while heifers needed an average 6.19 lbs. vs. 6.28 lbs. the year
prior.
Feedlots reported the cost of gain for steers in 2006 at $53.94 per cwt., only
$0.83 per cwt. higher than in 2005 but $3.52 per cwt. higher than the 2001 –
2005 average. Heifers closed out at an average $57.10 per cwt., $1.40 per cwt.
higher than 2005's average.
For 2006, feedlots reported an average corn price of $2.77 per bushel,
only $0.33 per bushel higher than 2005's average as prices did not surpass the
$3 per bushel mark until late in the year. Alfalfa hay at an average $109.39 per
ton in 2006 was the highest annual price reported thus far in the survey (began
in 1992). Compared to 2005, hay prices in 2006 were more than $33 per ton higher
and were nearing $140 per ton in December.
Interaction That Affected the Selling Price of Feeder Cattle
This is the last article discussing the results of an auction barn survey
conducted from January 1 to December 31, 2005, to determine the factors that
affect feeder cattle prices. It addresses some interactions that affected the
selling price of calves and a project summary. The last article will compare the
discounts and premiums from the 2000 and 2005 study.
Factors affecting the selling price of lightweight calves (≤ 500 lbs.) were
different than the factors that affected the selling price of heavier cattle (>
550 lbs.). For example, breed and color were very important factors in
determining the price of lightweight cattle, but as cattle weights increased,
breed and color became less important. Therefore, if a producer sells a breed or
breed type that are discounted as lightweight cattle, they may be better off
keeping those cattle until they weigh over 550 lbs.
For lightweight cattle, grey white-faced, red, red white-faced, white, and
spotted or striped cattle were discounted. As calf weight increased, only
spotted or striped cattle were discounted. Therefore, if cattle producers were
selling grey white-faced, red, red- white faced, or white calves, they may be
better off selling them at heavier weights (> 650 lbs.).
For all but one weight category (400 to 449 lbs.), the selling price between
large- and medium-framed calves across weight groups was the same. Regardless of
selling weigh, small-framed cattle were heavily discounted.
Muscle was a major factor that affected selling price regardless of calf
weight. The selling price of muscle scores 1 vs. 2 calves weighing 300 to 349
lbs. was $16.00 per cwt. As calf weights increased, the discounts seemed to
flatten but remained rather large. In addition, muscle score 2 cattle were
discounted from a low of $7.00 in June to a high of $10.00 in January, February,
March and April. The discount between 1’s and 2’s was $8.00 to $9.00 in the
fall. This indicates that muscle thickness is a very important factor in
determining the selling price of all calves.
It’s thought that a smaller discount exists between lightweight bulls and
steers as compared to heavyweight bulls and steers. The 2005 data doesn’t
support that thought. The selling price difference between bulls and steers
remained rather constant as calf weight increased. The selling price between 300
to 349 lbs. bulls and steers calves was $8.00 per cwt., and the selling price
between 700 to 749 lbs. bulls and steers calves was $8.00 per cwt. The selling
price between bulls and steers ranged $5.00 to $8.00 cwt. across all weight
groups. Even though the price per cwt. remained rather constant, the discount
per head increases as calf weight increased.
The discounts for bulls did decrease during the spring compared to the fall.
Bulls sold for $4.00 to 5.00 cwt. less than steers in February and March. During
the fall (September, October and November), the bull discounts increased to
$6.00 to $8.00 per cwt.
If you have any questions about managing herd genetics to improve the value
of your calves, contact your local
county
Extension agent.
By: Dr. Keith Lusby and Dr. Tom Troxel
Back to
Articles published in Arkansas Cattle Business |
