November 2018 Form-A-Feed Cattle Projections
Another month of cattle feeding and crazy weather!
November projections still seemingly pointed up and down depending on how well managed one can maintain their cattle and facilities and manage their risk.
Some items to note for November:
- Cattle continue to trickle in amongst farmers trying to get the remaining crop out of the fields, bedding made and manure hauled.
- Yearling cattle seemed to have hit their peak with the course of heavier weight cattle now coming up from the south.
- A demand for lightweight cattle seemingly slowed this month allowing for some purchases fed for summer contracts.
- Based on some live cattle groups coming in, it seems many of the larger pen groups are being put together through the sale barn as most of the early ranch direct calves have been delivered.
- Holstein steers continue to look positive pending the basis is contracted quickly. You will note the basis used on this months Holstein selling price is $-14.00 as cattle have been placed through the fall months.
- Self-feeder profits still exists for Holsteins in both a traditional Tend-R-Leen program and byproduct grain blend with high efficiency/healthy type cattle.
- Based on the USDA Livestock, Poultry and grain marketing news the weekly choice cutout continues to climb even with a year ago, even though HCW have tended to drop a few pounds most likely due to the environmental conditions cattle have had to endure to finish out this fall.
- Amongst lower 5 weight average cattle prices producers continue to extend themselves in an effort to produce high quality beef for both domestic and international consumption.
As a reminder, as cattle prices continue to remain low and margins tight, one must be certain to understand all that’s taken into consideration for production COG and to predict cattle profitability prior to purchasing a set of cattle. Risk must be managed in order to stay profitable.