COW/CALF
CORNER
The
Newsletter
From
the Oklahoma Cooperative Extension Service
October
30, 2017
In this issue
Something for
everyone in current feeder cattle markets
Derrell S. Peel,
Oklahoma State University Extension Livestock Marketing Specialist
Can storage of
vaccine affect its efficacy?
Gant Mourer Beef
Value Enhancement Specialist Oklahoma State University
The impact of
dressing percent on cull cow marketing
Glenn Selk,
Oklahoma State University Emeritus Extension Animal Scientist
Something for
everyone in current feeder cattle markets
Derrell S. Peel,
Oklahoma State University Extension Livestock Marketing Specialist
You
know that old saying about a gift horse and its mouth…this is no time to be
checking the teeth on current feeder cattle markets. Feeder cattle
markets have stayed stronger than expected this fall and offer a number of
opportunities for all types of cattle producers. Calf prices have dropped
very little this fall from summer levels…much less than the normal seasonal
decline. Oklahoma calf prices this October are about 27 percent higher
than this time last year. Cow-calf producers are selling weaned calves
for $150 to $200 per head more than last year.
Heavy
feeder cattle prices have not declined seasonally rather they have increased
this fall. Seven-weight steers are up about six percent in October from
August and are 25 percent higher than last year. An increase in heavy
feeder price relative to stocker price increases the value of gain and is a
stocker signal to put more weight on cattle in the country. For example,
adding 250 pounds to a 500 pound steer currently has a value of gain of about
$1.35 per pound at current prices. Feedlots are bidding heavy feeders
higher and that increases the signal for stockers to add weight to cattle prior
to feedlot placement.
Of
course, current value of gain is only the buy signal and does not include the
market risk between now and when the 750 pound steer in the above example will
be sold. However, Feeder Cattle futures have been remarkably strong and
currently offer an opportunity to lock in good margins for feeders sold in the
March to May time period. The 750 pound steer will likely have a
breakeven of $140-$145/cwt in March, depending on gain and costs. March
Feeder futures at the time of writing this article were about $153/cwt.
suggesting a rare margin opportunity for winter grazing. Stocker
producers, and cow-calf producers with potential to retain weaned calves as
stockers, should pencil out the opportunities depending on beginning weight and
expected timing and weight of later sales. While cash market fundamentals
are solid, spring Feeder futures are arguably overpriced and subject to
correction at any time. The best opportunities may be fleeting!
Earlier
in the fall, feedlots were losing some money and appeared to be paying too much
for feeder cattle and thus jeopardizing feedlot margins for the coming months.
However, cash fed cattle prices have improved recently, increasing current
margins. Cost of gain is expected to stay very favorable for the
foreseeable future. Moreover, Live Cattle futures prices have pushed
higher recently to levels that come close to supporting current feeder prices
for cattle finishing through next April. As with Feeder futures, the Live
Cattle futures pricing opportunity may be short-lived.
Strong
demand is what makes all of this possible. Boxed beef prices have
recovered about $10/cwt. from the early fall lows. Retail beef prices are
holding close to year ago levels despite a four percent increase in beef
production in 2017. Demand is strong in both domestic and
international markets, with year to date exports up over 14 percent.
Strong demand is the key to allowing all sectors of the industry to have decent
margins simultaneously and will be the key as beef production continues to grow
in 2018.
Can storage of
vaccine affect its efficacy?
Gant Mourer Beef
Value Enhancement Specialist Oklahoma State University
Respiratory
disease in cattle also known as BRD, shipping fever or pneumonia may cost the
U.S. cattle industry over $2 billion annually (Powell 2013). Management
techniques can offset much of this cost and having a good vaccination program
can maintain the health of a calf all the way through the production system. A
vaccine can cost over $3.00 a head, and if not stored properly that vaccine can
be rendered in effective. Producers cannot afford to overlook the importance of
how they store vaccine and handle it prior to injection.
Biological
products should be stored under refrigeration at 35 to 45⁰F unless the
nature of the product makes storing at a different temperature advisable (APHIS
2007). If vaccines are not stored within this temperature range, efficacy to
the calf can and will be reduced. Killed vaccines are especially susceptible to
freezing temperatures. Freezing a killed vaccine will alter the adjuvant or
delivery system of a killed vaccine. This, in turn, negatively affects the
immune response to the antigen in the vaccine. Modified live viruses (MLV) are
more stable but can be in-activated if they are repeatedly cycled above or
below the required temperature range (Gunn et al, 2013). Also, once activated
by mixing, MLV’s effective life will be reduced to 1-2 hours and need to be
maintained at the 35⁰ to 45⁰ F. This can be
accomplished by only mixing the doses that you will use at that time and use a
cooler to maintain temperature while working cattle.
Researchers
from the University of Arkansas and Idaho analyzed the consistency of
temperatures for different types, ages and locations of refrigerators over a 48
hour period. They found that only 26.7% and 34.0% of refrigerators were within
the acceptable temperature limit 95% of the time, respectfully. Refrigerator
location can also effect temperature. Refrigerators located in barns (35.6 ⁰F) were colder
than in mud rooms (41.72 ⁰F) and kitchens
(40.82 ⁰F). (Troxel and
Barham 2009). Temperature within a 24 hour period can also be highly variable
for individual refrigerators. Troxel and Barham (2009) demonstrated some refrigerators
may take up to 8 hours to cool down to the 45⁰F, while others will remain too cold
varying from 24.8⁰F to 35.6⁰F.
Producers
need to be aware of these variations in temperature so they are able to adjust
refrigerator temperature as needed. Thermostats can also be very variable from
unit to unit, so keeping a thermometer inside works well to monitor and to make
adjustments as need. Simple indoor-outdoor thermometers work well to achieve
this goal. The outdoor unit can be placed in the refrigerator while the LCD
display can be hung with a magnet on the door. This allows temperature to be
monitored without opening the door and many models will record the high and the
low temperature in a 24 hour period so producers can adjust accordingly.
How
a producer handles vaccine outside of the refrigerator is important as well.
Coolers can easily be modified for syringes and are important to maintaining
vaccine efficiency chute side. Using a 1 ½’ PVC pipe or sink tail piece
purchased at any hardware store and a 1 ½’ hole saw, inserts can placed through
the cooler and work well to keep syringes cool and out of light while in use.
Either ice or freezer packs can be used as a coolant to maintain temperature
for several hours depending on outside ambient temperature. Make sure that
enough coolant is used to maintain temperature while working cattle and extra
ice may be needed if working cattle all day or during warm days. It may also
take up to an hour for the cooler to reach the needed 45⁰F, so producers
may need to plan ahead prior to processing cattle. Details on the
construction of a chute side vaccine and syringe cooler can be found in
Oklahoma State University Fact Sheet ANSI-3300: "Chute
Side Vaccine Cooler"
These
are a few simple suggestions that can help ranchers get the full value of the
vaccine that they purchase. More importantly, positively affect the health of
their herd, decrease sickness, and increase profit.
The impact of
dressing percent on cull cow marketing
Glenn Selk,
Oklahoma State University Emeritus Extension Animal Scientist
Cull
cows that are destined to go to the packing house are graded by their
fleshiness. The fattest cows are called “Breakers”. Moderately
fleshed cows are “Boning Utility”. Thin cows are called “Leans” or
“Lights”, depending upon the weight of the cow. There will be price
differences among these four grades. However, within each grade, large
variation in prices per hundredweight will exist because of differences in
dressing percentage. Cow buyers are particularly aware of the proportion
of the purchased live weight that eventually becomes saleable product hanging
on the rail. Dressing percentage is (mathematically) the carcass weight
divided by the live weight multiplied by 100.
Key
factors that affect dressing percentage include gut fill, udder size, mud and
manure on the hide, excess leather on the body, and anything else that
contributes to the live weight but will not add to the carcass weight.
Most USDA Market News reports for cull cows will give price ranges for High,
Average, and Low Dressing Percents for each of the previous mentioned
grades. As you study these price reports, note that the differences
between High and Low Dressing cows and bulls will generally be greater than
differences between grades. Many reports will indicate that Low Dressing
cows will be discounted up to $8 to $10 per hundredweight compared to High
Dressing cows and will be discounted $5 to $7 per hundredweight compared to
Average Dressing cows. These price differences are usually widest for the
thinner cow grades (Leans and Lights). See examples from last week’s sale
in Oklahoma City National Stockyards:
As
producers market cull cows, they should be cautious about selling cows with
excess fill. The large discounts due to low dressing percent often will
more than offset any advantage from the added weight.
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Cooperative Extension Service.
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