June 2018 Cattle Feeding Projections
Year-to-date domestic production data through the end of last week as compared to 2017:
- Federally inspected slaughter +3.1%, 14.102 million head
- Cow slaughter +7.8%, 2.495 million head
- Carcass weight +0.6%, 812 pounds
- Beef production +3.7%, 11.452 billion pounds
Changes month over month on our feeding projections:
- Firmer feeder cattle market (Holsteins +$1.50-2.00/cwt, beef steers +$3.50-4.00/cwt, beef heifers +$4.00-7.00/cwt).
- Expected fed beef cattle prices mostly stronger with most classes +$1.00-3.00/cwt.
- Reduced cost of gain (-$2.00-4.00/cwt): corn -$0.36/bushel, corn silage unchanged, corn stalks unchanged, grass hay +$2.50/ton, DDGS -$9.00/ton, MDGS unchanged, and pelleted soy hulls +$1.00/ton.
- Mixed movements in net profits, but modest to substantial profitability persists for five of the eight classes of Holsteins.
- Overall upward movement in the profitability outlook for beef steers and heifers, with most classes pushing very close to breakeven on a cash to cash basis.
As always, please note the difference in cost of gain ($5-14/cwt) and potential profits ($50-200/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 few 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.