June 2022 Cattle Projections
It seems that the beef industry has many hurdles to overcome and that race may not be a sprint but rather a long distance run. Many things come together when looking at the cattle projections for June. Market turmoil becomes an everyday discussion as we continue to try to source lower cost alternative feeds to keep cost of gains (COG) low. This impact not only forces many feed companies to continue to raise prices but also custom yards and production facilities. As oil and labor continue to increase as well, these all impact and increase daily COG.
Slaughter values remain high albeit carcass weights are down about 6 lbs., these values may continue to trend downward as COG continue to climb. Quality grade, while cattle are fed fewer days, will also see a reduction. The positive to this is the Midwest raises some of the best, most sought after beef on the market, and last week’s live sales reflected that over our comrades to the south.
Supply of feeder calves may become tight this fall as cow numbers continue to be reduced and heifers continue to hit the feedlot pens. Additionally the cost to feed that cow and any counterpart calf (native/Holstein cross) is expensive, driving some feedlot producers to leave pens empty for the remaining summer months. While corn in the field certainly makes many breathe easier, the cost of that production, even when fed through cattle, is still staggering.
The summer grilling season is here and while this helps drive cattle bids, we must also retain our place on the grill by not giving up our space in the protein market. It seems we are always bidding for our spot between poultry and pork, and while our driving force is cost of production, so are the other markets. Supplying safe, fresh beef will continue to hold our spot on the grill.
The desire to continue to learn and get better during these trying times is king. A relationship you can trust goes a long ways when mistakes are more costly today and complicated than they were even just five years ago. Working side by side alongside your Form-A-Feed Nutrition and Production specialist is critical in understanding all facets of your operation. I would challenge you to find a team that is as dedicated and diverse as those who work for the Nelson Family of Companies.