Page 39 - MWC 3-9-2023s

0%-20% as cows age. A four- received. Producers look- The Midwest Cattleman · March 9, 2023 · P39
year-old bred cow would cost ing to buy bred cows in the
$1,150 (0% discount), a sev- late winter or early spring feedlots. This puts downward The nearby feeder cattle
en-year-old bred cow would should expect to pay a premi- pressure on feeder cattle price at the time of sale has a
cost $1,035 (10% discount), um. The highest premiums prices although the impact much larger impact than the
and a ten-year-old bred cow are in February and March is delayed as it takes at least nearby corn price. For exam-
would cost $920 (20% dis- as many producers are pur- 6-8 months before the poten- ple, relative to the BASE, a
count). Producers consider- chasing cows that are on the tial calf will reach the feed- $0.50 decline would increase
ing marketing older cows as same calving cycle in an- lot. Combining these impacts the price of our bred cow by
bred should acknowledge the ticipation of summer grass and current price forecasts 0.77% whereas a $10 per cwt.
heavy discounts assigned as and pastures. Prices peak in can show the premiums and increase in the feeder cattle
age increases. early March at approximate- discounts producers can ex- contract increases the price
Similarly, the closer the ly an 8% premium ($1,242). pect to receive for a bred cow. by 5.29%. Producers looking
cow is to calving, the more Prices are lowest in the sum- Premiums/discounts are rel- to rebuild herds through the
expensive the bred cow be- mer and fall months in areas ative to our bred cow (three- bred cow market should be
comes relative to a six-month that are heavy spring calvers year-old that is six months aware of these and other fac-
bred cow. Discounts and pre- as producers are culling their pregnant) and current CME tors before buying or selling
miums are nearly linear be- herds and determining which Feeder Cattle ($210 per cwt.) bred cows.
tween a 4% premium ($1,196) heifers to be retained – a 4% and Corn ($6 per bu.) con-
for an eight-month bred cow, discount ($1,104). Selling the tracts. Table 1 shows these
a 5% discount ($1,092) for a same quality, age, and preg- premiums and discounts.
4-month bred cow, and a 12% nancy age results in a differ-
discount ($1,012) for a one- ence of $138 per cow.
month bred cow. These pre- Current market conditions
miums and discounts exist will also play a role in the
as there is less risk of losing price of bred cows. The feed-
a calf as age increases, lower er cattle and corn markets
production costs before the are the two largest drivers
calf’s birth, and revenue is of bred cow prices. Higher
received more quickly when feeder cattle prices create in-
late-gestating cows are pur- centives for more calves to be
chased. brought to market and bred
Selling this same bred cows are the quickest way
cow at different times of the to do so. Higher corn prices
year will impact the price increase the cost of gain in

ellis Family Three Generations Raising

Herefords No Excuse Herefords

Production Sale • May 7 • Aurora, MO

Maternal • Calving Ease • Performance

caLL or eMaiL for cataLog • jimbellis@missouristate.edu

Jim & Carla 417-466-8679 Jamie & Kevin 573-289-1061 Jonathan 417-440-1300
19264 Lawrence 2170 • aurora, Mo 65605

40 Bulls • 75 Spring & Fall Calving Pairs