July 2019 Cattle Feeding Projections
There are some positive notes to this month’s cattle feeding projections finding certain classes of cattle back in the black. One thing to definitely highlight is that the low efficiency groups sort themselves to the bottom justifying the cause for better management and quality feedstuffs to ensure a positive return on investment.
Feeder calf prices have seemingly strengthened even with corn price climbing. A mixed crop report definitely has many scratching their heads when trying to forecast the right way to look at this upcoming fall cattle rush. Many of these fall calves won’t be priced till late, and with ample grass and projected forage from prevent plant acres it seems there really isn’t a push to move calves either.
The main movements impacting feedlot COG include the corn price. This is a graph from Markets Insider showing you average corn price in the last year and the spike its taken in the last month. While these values aren’t anywhere close to the high prices we saw from 2011 through 2013, they certainly are impacting our current potential returns.
The rest of the feedstuffs have lowered or stayed flat from last month’s projections. With a little bit of breathing room with some hay getting put up the pressure has lightened some, but is certainly not down to normal levels yet while feed yards replenish their hay supply.
The cattle slaughter report continues to show us moving cattle at values that exceed or equal last year at this time. If you haven’t visited the USDA 5 area weekly trade website, I would encourage you to visit. This snapshot gives one an educated look at where our slaughter levels sit from week to week in addition to last years values. Providing some insight as to where packer offerings are coming from. Price paid and weights are also broken down by animal type. You can find that information here. h
As always, if you are in need of more precise projections for your operation, please contact your local Form-A-Feed Nutrition and Production specialist.