Page 42 - MWC 10-5-2023s

The Midwest Cattleman · October 5, 2023 · P42
Winter Wheat Forage Prospects Better in 2023

In Oklahoma, winter frequently evalu-
wheat is used for three dif- ate stocker bud-
ferent crops: wheat for grain get prospects this
only, wheat for forage only, fall prior to stock-
and dual-purpose wheat for er purchase. Calf
grazing and grain. Produc- prices are moving
ers interested in grazing win- counter-seasonally
ter wheat for dual-purpose higher this summer
or forage only will be think- suggesting that
ing about planting wheat by stocker purchase
late August and into early costs will contin-
September. Much of the ue to increase this
state has better soil mois- fall. The Okla-
ture and soil temperature homa combined
conditions for early-planted auction price for
winter wheat than in recent 450-500 pounds
years. The exception is a Medium/Large #1
few counties along the Red steers in the sec-
River in the south-central ond week of August
part of the state which have reached $302.05/
received relatively little rain cwt., the highest
this summer. weekly price since
Wheat forage production June 2015 and just
conditions are only some of the 6.4 percent below the record market is to push cattle into bushel. Grain markets re-
challenges for winter wheat high of $322.56/cwt. in No- feedlots sooner and through main very volatile with sum-
stocker producers. Dynamic vember 2014. the beef production system mer weather conditions and
cattle and grain market con- As cattle numbers con- faster to keep beef produc- the feedgrain supply and
ditions mean that producers tinue to tighten this year, tion as high as possible. Beef price for the coming year are
will need to carefully and the general incentive in the production is down about uncertain. Still, the pros-

4.8 percent year over year pect of moderating feedlot
thus far in 2023 but is falling cost of gain will be a further
more sharply recently, with challenge for stocker produc-
July beef production down ers. Cheaper cost of gain will
You’ve got to ‘hang 6.7 percent compared to one give feedlots more ability to
year ago. Heifer slaughter compete for limited feeder
around’ in the right decreased more sharply in cattle supplies and further
July, down 5.5 percent year enhance the general need to
places if you want to get over year and contributing to push cattle through the sys-

a 6.1 percent year over year tem faster. A lower feedlot
decrease in total yearling cost of gain generally means
attention...
(steer + heifer) slaughter feedlots can purchase light-
Your Ad Could be Here! for the month. Additionally, er weight feeder cattle and
beef cow slaughter was down place them in feedlot earlier.
In an environment of lim-
21.4 percent year over year
in July, contributing to the ited feeder cattle supplies
faster pace of declining beef and lower feedlot cost of gain,
production. In this beef pro- the role of stocker produc-
duction environment, hold- tion is squeezed more to the
ing cattle in relatively slow- very lightweight end of feed-
paced stocker production will er cattle and an incentive to
be less feasible. However, market sooner rather than
among stocker production later with less weight gain
systems, high quality wheat prior to feedlot placement.
forage produces relatively In the short run this gener-
rapid gains that may still be al tendency may be partially
economical. Careful moni- offset by the strong uptrend
toring of rapidly changing in feeder cattle prices. In
market conditions is essen- short, cattle and feed mar-
tial. kets are extremely dynamic
After two years of high and require constant evalua-
feedlot cost of gain, corn pric- tion and nimble response to
es may moderate with the changing conditions.
current crop. December corn Cow-Calf Corner
futures peaked as high as
$6.28/bushel in late June but
are currently around $4.85/