Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

Record Feeder Prices Supported by Latest Data

Mon, 19 May 2014 12:04:37 CDT

Record Feeder Prices Supported by Latest Data
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist, writes in the latest Cow-Calf Newsletter:

Last week, the Oklahoma combined auction price for 450-500 lb., Med/Large, No. 1 steers was $237.27/cwt., up 46 percent from one year ago. The price for 750-800 lb. steers was $187.32 cwt., up 43 percent for last year. Feeder cattle prices are at a record level by a large margin. Fed cattle prices have decreased slightly from highs in late March but are still about 17 percent over fed prices this time last year. Boxed beef prices have been extremely volatile and are currently down from rollercoaster highs in January, March and April. However, current boxed beef prices are roughly 17 percent over year ago levels.

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, it is clear that feeder supplies are extremely tight and the feedlot scramble to maintain feedlot inventories will continue. 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. Drought redevelopment could lead to early marketing of calves and stockers along with diversion of replacement heifers back into feeder markets. Though drought continues and has recently expanded in parts of the Southern Plains, conditions are generally better than last year.   

Currently, 22 percent of U.S. pastures and ranges are rated poor or very poor compared to 33 percent 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. 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. Additionally, corn planting progress accelerated significantly relieving some of the growing concerns about corn production and prices. 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. 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.

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. April placements were down five percent from last year, slightly lower than expected. Fed cattle prices are working lower in May and additional seasonal decreases are expected in June and July. However, fed prices may drop below $140/cwt. only briefly if boxed beef prices hold strong through the summer.   April retail beef prices were once again higher at record levels. Year over year increases in U.S. beef exports along with improved middle meat values indicating that domestic demand is holding firm are supporting higher retail beef prices.   Beef prices are also being supported by higher pork values and rising poultry prices. While short term volatility in cattle and beef markets means that sector margins are fluid, the fact that prices across the entire beef and cattle complex are higher suggests that the higher prices, from calves to retail beef prices, are generally sustainable at current levels. Aside from seasonal tendencies there is no immediately apparent reason for prices to decrease. Over time, additional reductions in supply will further support markets and push prices to even higher levels.



WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Friday April 3, 2020  Sat, 04 Apr 2020 16:32:49 CDT
  • Friday, April 3, 2020 Market Wrap-Up with Justin Lewis  Fri, 03 Apr 2020 15:39:59 CDT
  • Global Changes Could Impact U.S. Farmers' Spring Planting Intentions Says USDA Chief Economist Rob Johansson  Fri, 03 Apr 2020 14:30:08 CDT
  • Despite Global Challenges, U.S. Pork and Beef Exports on Record Pace through February  Fri, 03 Apr 2020 14:07:52 CDT
  • USDA Adds Additional Flexibilities for Crop Insurance to Support America’s Farmers and Ranchers  Fri, 03 Apr 2020 13:18:47 CDT
  • Coronavirus Impact Ripples Across Farm Country  Fri, 03 Apr 2020 14:15:59 CDT
  • *Deadline Extended* OKFB Accepting Applications for $1,000 Scholarships  Fri, 03 Apr 2020 11:39:47 CDT
  • National Sorghum Producers to Open Board Director Applications  Fri, 03 Apr 2020 10:17:47 CDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma City Farm Show KIS FUTURES, INC. Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association

    Our Road to Rural Prosperity sponsors!


    Search OklahomaFarmReport.com

    © 2008-2020 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.