Page 6 - Oct22020

The Midwest Cattleman · October 22, 2020 · P6
Lack of moisture threatens winter grazing

By Derrell S. Peel, Oklahoma State University Extension Livestock Marketing

proved to 55 by mid-September Wheat pasture development es last week (Oklahoma com-
and has increased again to 64 and growth is likely to slow or bined auctions) showed that
in the latest Drought Monitor. even reverse if forecast weath- the value of increasing steer
Nationally, the DSCI has wors- er conditions are realized. This, weight from 500 to 550 pounds
ened since May and currently in turn, may reduce stocker increased animal value by $30/
stands at 148, with the majori- cattle demand in the coming head or $0.60/lb. value of gain.
ty of drought conditions in the weeks. On average, Oklaho- From 550 to 600 pounds, steer
Most of western Oklahoma western half of the country. ma calf prices are at or near value increased by $29/head or
has received little or no mois- La Niña conditions have de- the seasonal low in the late $0.58/lb. of gain. In contrast,
ture in the past two to three veloped this fall in the Pacific September/early October pe- steers from 600-650 pounds in-
weeks advancing drought Ocean and are expected to per- riod. With larger fall runs of creased in value by $69/head or
conditions once again. From sist through the winter. The calves expected in October and a value of gain of $1.37/lb. The
the worst levels in early July, presence of La Niña in the win- November, the lack of wheat same is true for heavier weight
drought conditions in Okla- ter typically results in drier pasture demand may add ad- feeder animals. The same pat-
homa had generally improved than average conditions across ditional seasonal pressure to tern is true for heifers with the
until mid-September. In the the southern U.S. As a result, calf markets this fall. Lack of price break occurring at about
past two weeks, the Drought the drought outlook for the wheat pasture or other forages 550 pounds.
Monitor map for Oklahoma remainder of the year, provid- may change the timing of calf The current feeder price
shows conditions once again ed by the Climate Prediction and feeder cattle sales this fall. patterns mean that producers
deteriorating. The Drought Center, indicates persistent A feeder cattle price pattern should consider the implica-
Monitor includes a Drought drought in current drought has developed this fall in Okla- tions of current animal weight,
Severity & Coverage Index areas with drought conditions homa that is very typical at this short-term weight gain and
(DSCI), which provides an indi- expanding eastward into the time of year. The price slides timing as they evaluate fall
cation of how severe and wide- central and southern plains, across steer weights are very marketing alternatives. In the
spread drought conditions are including much of Oklahoma. different for feeder cattle below current market for example,
based on the Drought Monitor Current Oklahoma weather 600 pounds compared to cattle the value of 50 to 100 pounds
categories. The DSCI for Okla- forecasts are consistent with over 600 pounds. A larger price of gain will be significantly
homa was highest (indicating these broader indications with slide for the lightweight cattle lower for steers less than 600
worse drought conditions) at scant precipitation prospects means that the value of gain is pounds compared to steers
143 in early July. The DSCI im- likely for the next two weeks. lower. For example, steer pric- over 600 pounds.

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