July 2018 Cattle Feeding Projections
Year-to-date domestic production data through the end of last week as compared to 2017:
- Federally inspected slaughter +3.0%, 17.278 million head
- Cow slaughter +6.8%, 8.836 million head
- Carcass weight +0.4%, 810 pounds
- Beef production +3.5%, 13.999 billion pounds
Changes month over month on our feeding projections:
- Stronger feeder cattle market (Holsteins +$3.00-9.00/cwt, beef steers +$5.00-12.00/cwt, beef heifers +$4.00-11.00/cwt).
- Expected fed beef cattle prices mostly stronger with most classes +$2.00-4.00/cwt.
- Reduced cost of gain (-$4.00-8.00/cwt): corn -$0.18/bushel, corn silage unchanged, corn stalks +$5.00/ton, grass hay -$22.50/ton, DDGS -$56.00/ton, MDGS -$15.00/ton, and pelleted soy hulls unchanged.
- Mostly upward movement in net profits with modest to substantial profitability for five of the eight classes of Holsteins and the remaining three sitting just below breakeven.
- Overall upward movement in the profitability outlook for beef steers and heifers with half of the classes now in the black.
As always, please note the difference in cost of gain ($5-11/cwt) and potential profits ($40-200/head) between the high and low performance projections. Ensuring proper management and animal husbandry can make the world of difference in this regard. Summer heat and the risk of heat stress and impaired performance is here to stay for the next couple months. It is imperative to be proactive and work with your Form-A-Feed representative to devise a management and feeding plan which best mitigates the effects of heat stress. Remember to keep this as a priority as profits on well managed cattle are hard to come by in today’s market and virtually impossible to find on those which are not managed to their full potential.
For more specific projections, please contact your Form-A-Feed representative.