Page 25 - MWC 04-22-2021s

LOOKING AHEAD increase above the com- The Midwest Cattleman · April 22, 2021 · P25
continued from page 17 modity market average.
The futures-implied
aggressive in an up-trending 650 lb. steer price given
market, but let’s take a look the above assumptions
at a breakeven projection as suggests a $156.38/cwt.
an exercise of awareness. breakeven purchase
Using one of the more fa- price for the October
vorable examples, we’ll look delivery. Updating the
at 650 lb. steers delivered in math with the accom-
October with an expected fin- panying grid premiums
ish date in April 2022. Fur- and discounts implies a
ther feedyard performance $164.33/cwt. purchase
assumptions include 3.6 lb. price after premiums.
average daily gain at 6-to-1 Capturing the pre-
dry matter feed conversion. mium at weaning, after
If taken to a shrunk fin- backgrounding or sell-
ished weight of 1,380 lb. with ing the finished steers
an average of 1.5% death requires planning and
loss, then the total cost of dedication to market-
gain lands near $1.08/lb. The ing. Results are widely vari- casses in 2011 to just over ing the Choice total down to
finishing date is at the end of able. 12% so far in 2021. In con- 72%, with the resulting effect
April, so it’s fair to acknowl- trast, the Certified Angus on Select touching record low
edge that likely one-third of SELECT CARCASSES Beef® brand has increased territory. The larger propor-
the pen will fall in the May SCARCE, QUALITY UP from 11.7% to 21.4% of all fed tion of quality carcasses is
market. If sold in the weekly AGAIN cattle carcasses in as much being met with seasonally
cash market, the math sug- The continuing evolution time. higher quality price spreads,
gests a breakeven purchase in carcass marbling content The seasonal grading pat- undaunted by the richest
price of $156.38/cwt. is highlighted this spring as tern predicts quality grades marbling mix the industry
Grid marketers have a bit the Select quality grade fell less rich in the near May/ has ever achieved.
more figuring to do. A good, to the lowest proportion of the June timeframe. But current
but not exceptional, set of carcass mix in modern histo- data shows Prime carcass-
Angus steers might achieve ry. In the last eight weeks, es looking for elbow room as
the carcass results seen in Select carcasses accounted the Prime grade average hit
the table below. Given 203 for just 11.8% of total fed cat- 12.5% two weeks ago, push-
days on feed and an aver- tle. In the past year fed cattle
age backfat thickness of 0.65 outcomes have been largely
inches, the proposed yield impacted by extra days on
grade outcomes and estimate feed, since many cattle could
of 8% of carcasses over 1,050 not be harvested due to the
lb. (heavies) are logical. backlog. However, the shrink-
cattle feeders concrete tanker fence
Using this week’s USDA ing Select category has been cattle feeders concrete tanker fence
grid premiums and discounts an entrenched evolution for
line tank stock freeze-proof pond tank
report, the net adjustment to more than a decade, as the line tank stock freeze-proof pond tank
THIS AIN'T
the carcass price is +$5.91/ cow-calf sector made breed united stated midwest www.thecon-
cwt. Converted to a live price and trait selections favor- NO BULL!
united stated midwest www.thecon-
the premium is $3.74/cwt. or ing carcass quality. Feedlot creteworks.com
$51.70/head. placement and finish weights ›› Concrete Cattle Feeders
creteworks.com
Feedyard operators are as well as management are
privy to more details fitting also favoring carcass quality, ›› Super-Tanker Fence Line
their own circumstances but on average. Freeze-Proof Stock Tank
cow-calf operators may find The 10-year trend in the
the grid calculations helpful. chart is only a brief segment ›› Freeze-Proof Pond Tank
That $51.70/head premium of a more dramatic historical
backed up to the weaned 650 decline, with Select dropping ›› Delivery in the Cont. U.S.
lb. steer price is a $7.95/cwt. from 29% of fed cattle car-
www.theconcreteworks.com
OVER
450,000
SOLD!
Reader Service No. 2163
ITEMS IN STOCK:

SHIPPING SEMI LOADS DAILY!
www.theconcreteworks.com
7-6-18 Plains

Reader Service No. 2163
THE CONCRETE WORKS LLC

877-464-7575
www.theconcreteworks.com
7-6-18 Plains