Friday, April 29, 2016

Cattle Outlook Ron Plain and Scott Brown Ag Economics, MU April 29, 2016

Cattle Outlook

Ron Plain and Scott Brown
Ag Economics, MU
April 29, 2016

There were 467 million pounds of beef in cold storage at the end of March. That was 5% less than the month before and 3% less than a year earlier. The amount of pork in cold storage at the end of March was down 8.7% year-over-year, but frozen chicken stocks were up 4.6%

USDA's annual publication, Meat Animals Production, Distribution, and Income, says U.S. cash receipts from cattle sales totaled $78.2 billion dollars last year. That was down $3.2 billion from the 2014 record. Five states had more than four billion dollars in sales in 2015: Nebraska, Texas, Kansas, Iowa and Colorado. At $12.5 billion, Nebraska had a billion dollars more in cash receipts than number two Texas. Missouri ranked ninth at $2.1 billion in cash receipts from cattle sales.

Compared to a year ago, there were 1.3% fewer steers on feed at the start of April, but 4.5% more heifers on feed. This is the first year-over-year increase in the number of heifers being fed since July 2012. It is an indication that the growth in the cow herd may be starting to slow.

Beef cutout values are sharply lower this week. This morning the choice boxed beef cutout value was $212.05/cwt, down $8.45 from the previous Friday and down $42.45 from a year ago. The select carcass cutout this morning was $203.17/cwt, down $8.39 from last week and down $39.21 from a year ago.

Fed cattle prices were lower this week in heavy volume. Through Thursday, the 5-area average price for slaughter steers sold on a live weight basis was $123.87/cwt, down $1.71 from last week's average and down $35.30 from a year ago. The 5-area dressed steer price averaged $194.50/cwt, down $10.86 from the week before and down $59.40 from a year ago.

This week's cattle slaughter totaled 590,000 head, up 0.5% from last week and up 4.6% from a year ago. The average steer dressed weight for the week ending on April 16 was 878 pounds, down 2 pounds from the week before, but up 6 pounds from a year ago. This was the 96th consecutive week with steer weights above the year-ago level.

Prices for feeder cattle this week at the Oklahoma City Stockyards were $1 to $4 lower compared to last week. Calves were steady to $3 lower. Prices for medium and large frame #1 steers by weight group were: 400-450# $186.50-$198.50, 450-500# $179.50-$190, 500-550# $157-$183, 550-600# $163-$182, 600-650# $145-$176.50, 650-700# $164-$167.50, 700-750# $141.50-$153.50, 750-800# $137.50-$145.75, 800-900# $130-$143.75 and 900-1000# $120-$133/cwt.

Today, the April live cattle futures contract settled at $123.10/cwt, down $1.62 for the week. June fed cattle settled at $114.92/cwt, up 27 cents from the previous Friday. The August contract ended the week at $112.42/cwt, up 87 cents from the previous Friday. May feeder cattle ended the week at $140.42/cwt, down $2.03 from a week earlier. August futures lost $1.73 this week to close at $140.37/cwt.

Monday, April 25, 2016

COW/CALF CORNER The Newsletter From the Oklahoma Cooperative Extension Service April 25 2016

The Newsletter

From the Oklahoma Cooperative Extension Service
April 25 2016

In this Issue:

More cattle on feed and less cold storage
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

The latest Cattle on Feed (COF) report showed feedlot inventories (among feedlots with 1,000 head or more capacity) on April 1 of 10.853 million head, 100.5 percent of year ago levels.  March feedlot marketings were 107 percent of last year and placements were 104.6 percent of year earlier placements.  There was one more business day in March 2016 compared to one year ago.  There were no major surprises in the report but it could be considered mildly bullish with placements on the low end of expectations. Nevertheless, this is the second month of year over year increases in feedlot placements; a trend that will continue as feeder supplies continue to grow in the coming months.

The COF report showed larger placements in the Texas, Oklahoma and Colorado compared to Iowa and Nebraska.  All of the increase in March placements were feeders over 700 pounds with the largest increase in feeders 700-800 pounds. These cattle will hit the market mid to late third quarter and in the fourth quarter of the year.

This report also included the quarterly breakdown of steers and heifers on feed and indicates some changes.  The total inventory of heifers on feed on April 1 was up 4.5 percent year over year.  This is the first increase in quarterly heifers on feed inventory in 14 quarters, since July of 2012.  This likely reflects both a growing heifer supply and some slowdown in heifer retention.  Herd expansion is likely still occurring, but at a slower pace in 2016.  In contrast, the inventory of steers in feedlots on April 1 was down 1.3 percent from one year ago.  This is the first year over year decrease in quarterly steer inventory in feedlots since July 2014.  This follows the dramatic increase in steers on feed in 2015 that coincided with delayed marketings and a sharp increase in carcass weights. Though the current steer inventory in feedlots is still large, the decrease in quarterly supplies is a good sign that feedlots are moving steers at a more timely pace this year.  Steer carcass weights are currently about 12 pounds heavier year over year while heifer carcasses are running about 10 pounds more than one year ago. However, both steers and heifer carcass weights have decreased seasonally in April. 

The monthly Cold Storage report was also released by USDA on Friday.  The report indicated that cold storage supplies of beef continued to decline in March.   This follows considerable concern that developed in January as beef in cold storage reached the highest monthly totals since November 2006.  Cold storage inventories are indicative of market conditions and may reflect changing short term beef demand conditions and changing beef imports and exports.

However, I think there is often misunderstanding of the role of cold storage and the implications of changing cold storage levels.  I received many questions early in the year about whether cold storage supplies of beef were a major supply issue.  Some producers wondered whether the recent record inventories meant that we had multiple years of beef supply in cold storage. It’s important to understand that cold storage inventories of beef represent a minimal pipeline level of supplies in the industry from month to month.  The average monthly supply of beef in cold storage in 2015 was less than 2 percent of total beef disappearance for the year.  The build-up of cold storage in 2015 was a useful indicator of sluggishness in beef movement (especially certain products) and large beef imports but was not, by itself, a major supply factor.

Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, Title IX of the Education Amendments of 1972, Americans with Disabilities Act of 1990, and other federal laws and regulations, does not discriminate on the basis of race, color, national origin, sex, age, religion, disability, or status as a veteran in any of its policies, practices or procedures. This includes but is not limited to admissions, employment, financial aid, and educational services.  References within this publication to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement by Oklahoma Cooperative Extension Service.

Wednesday, April 20, 2016

Garden Minute - Lawn Grasses

This is your Gardening Minute. 

Today let’s talk about what types of lawns can grow here in Quay County. 

An important aspect of obtaining a good lawn is to select the best adapted species and variety for your lawn. Certain grass characteristics, such as water use, climate, traffic tolerance, color, fineness, maintenance requirements and available resources are all factors that need to be considered when selecting a turf species. 

Turf grasses can be divided into two major groups - the cool-season and the warm-season grasses. 

Cool-season grasses include perennial ryegrass, Kentucky bluegrass, fescues, and creeping bent grass. Optimum growth of these grasses occurs within a temperature range from 60° to 70° F. They need considerably more water than warm season grasses. 

Warm season grasses, such as Bermuda grass, buffalo grass, blue grama, and St. Augustine grass grow best at temperatures between 80° and 95° and use water more efficiently. 

Both types of grasses can grow here in Quay County. Growers now have more choices of varieties that are denser, finer textured, and more drought tolerant than ever before.

If you are interested in learning more about turf grass species please contact us at the Cooperative Extension Office at 461-0562. This has been your Gardening Minute with Jason Lamb your Quay County Ag. Extension Agent. Where are programs are open to everyone.