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

advertisements
   
   
   
   
   
   
   

Agricultural News


Cattle Markets Looking for Spring

Mon, 15 Mar 2021 10:34:52 CDT

Cattle Markets Looking for Spring Mondays, Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry. This analysis is a part of the weekly series known as the "Cow Calf Corner" published electronically by Dr. Peel and Mark Johnson. Today, Dr. Peel talks about the cattle markets looking for spring.

March is a typically bi-polar weather time with indications of spring mixed with lingering winter blasts. This past week included a big winter storm and heavy snow from the Colorado Rockies across the Front Range and east from the northern plains into the upper Midwest. Meanwhile, tornadoes erupted in the Texas panhandle and heavy rain in the Mississippi river drainage is raising spring flooding concerns. The drought continues but some parts of the west and southwest have received some moisture recently. Depending on location, cattle producers are currently dealing with a wide range of weather conditions.

February data confirms the disruptions of the severe winter storm last month on cattle and beef markets. Steer and heifer slaughter dropped 7.1 percent year over year in the middle two weeks of February before bouncing back. Steer carcass weights dropped sharply in February, declining by 20 pounds from 919 pounds to 899 pounds in the last two weeks of the month. The last week of February marks the first time in 71 weeks (since October 2019) that weekly steer carcass weights were lower than the previous year. Heifer carcass weights dropped from 850 to 834 pounds in the same period. As we move into the period where carcass weights one year ago were elevated due to pandemic delays in fed slaughter, carcass weights are likely to be below year ago levels for much of the remainder of the year. Beef production dropped 6.1 percent year over year in the middle two weeks of February but bounced back to a 5.8 percent year over year increase the last week of the month. Beef production in the first 8 full weeks of 2021 was up 2.3 percent year over year.

In Oklahoma, first hollow stem in wheat pastures means that cattle must be removed for those wheat producers planning to harvest a wheat crop. After cattle auction volume dropped 74 percent in the last two weeks of February, total volume the first half of March has been 82 percent higher year over year including an impressive weekly total of 49,148 head last week. Feeder prices have remained steady despite the large auction volume in March. With cool-season forages beginning to green up, grazing demand for stockers is strong, supported by a hefty premium of fall Feeder cattle futures to nearby contract levels. Summer stocker prospects look quite attractive at this point.

Fed cattle markets have failed to put together a spring rally thus far with cash prices holding mostly steady for the past five weeks close to $114/cwt. Optimism continues going forward with June Live cattle futures holding an unusual premium to April contract levels. June Live cattle futures are currently priced at about $120/cwt. After the fed cattle market works through ample cattle supplies in the first half of the year, beef production is expected to decrease year over year in the second half of the year. Live cattle futures for the fall suggest higher fed cattle prices in the last half of the year.


   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m, Thursday, April 22  Thu, 22 Apr 2021 15:39:04 CDT
  • OSU's Kim Anderson Gives an update on the Impact of the Freeze on Grain Prices  Thu, 22 Apr 2021 15:37:32 CDT
  • Latest U.S. Drought Monitor Map Has Oklahoma Practically Free of Extreme Drought  Thu, 22 Apr 2021 14:56:14 CDT
  • Thursday, April 22, 2021 Market Wrap-Up with Justin Lewis  Thu, 22 Apr 2021 13:56:39 CDT
  • In Case You Missed It: Here's What They're Saying About the Growing Climate Solutions Act  Thu, 22 Apr 2021 12:13:11 CDT
  • NACD Announces Climate Action Task Force  Thu, 22 Apr 2021 10:06:34 CDT
  • NAWG Launches Special Climate and Sustainability Committee on Earth Day  Thu, 22 Apr 2021 09:58:52 CDT
  • On Earth Day, USDA Invests $487 Million in Rural Water, Energy, and Biofuel Infrastructure $3.8 Million Coming to Oklahoma  Thu, 22 Apr 2021 09:56:50 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

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

    Our Road to Rural Prosperity sponsors!

    Banc First OPSRC ORWA TPAOO TPAOO

    Search OklahomaFarmReport.com


       
       
    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.