Page 32 - MWC 3-10-2022s

The Midwest Cattleman · March 10, 2022 · P32
Holding on to calves through a down market
Can you lock in prices to control further price erosion?

By Paul Beck, Oklahoma State University
First it was just drought, have some grazeout wheat
now we have war in eastern available since we have got-
Europe. On the 24th of Feb- ten moisture from our winter
ruary Feeder Cattle futures storms and temperatures are
markets were down over $4 warming up. With wheat fu-
for most months, Live Cattle tures over $9/bushel, will the
were down over $2. Corn and wheat intended for grazeout
wheat were up over $0.50/ earlier in the year still be
bushel. The futures market grazed? To harvest a grain
jitters have given a lot of us crop the calves will need to
more to worry about. be coming off pasture within
Producers have asked a few weeks. If markets hav-
about keeping calves through en’t recovered and producers
these low markets until pric- want to keep them longer, we
es improve, whether this is have a few options for retain-
possible or advisable depends ing ownership and adding
on the ability to lock in prices further value. per day from late February and weighed 1283 pounds at
to control the risk of further Larger cattle kept on to early May (65 to 80 days). slaughter. In another Arkan-
price erosion. There are sev- grazeout wheat, weighing These cattle can gain 150 to sas trial, yearlings fed after
eral ways that cattle can be over 650 pounds, should not 250 pounds and should go to wheat pasture gained 4.9 lbs/
retained to delay marketing, be held over on warm season the feedyard, weighing 800 day and were slaughtered at
and the recommendation of grass. On grazeout wheat to 900 pounds. Calves from 1323 pounds. These two sets
which production system to pasture, these calves often research recently discussed of cattle provide a range of
use depends on several fac- gain over 2.5 pounds per in this column from Arkan- performance expectations
tors related to the size and day. Over the years, cattle sas were placed on feed at from about average to much
type of cattle, available re- on grazeout wheat pasture 880 pounds following an ex- better than average.
sources, and producer risk studies conducted in Okla- tended wheat grazing pro- A summary of yard close-
tolerance. By the end of Feb- homa and Arkansas report gram. These cattle gained outs from Hitch Enterprises
ruary, growing cattle should gains from 2.2 to 3.3 pounds 3.4 lbs/day during finishing continued on page 36