K-State Livestock & Meat Marketing Home Page
Wean & Sell Calves Early
Drought conditions are forcing many cow-calf producers to
wean calves early to preserve remaining feed resources for their
cows. As a result, many cow-calf operations are considering
selling their calves much earlier than normal and at lighter than
normal weights. Little price history exists for light weight
calves sold in July since, most years, there are very few light
weight cattle traded during the summer.
Prices for 300-400 pound steer calves sold at Dodge City, Kansas averaged about $115/cwt. during the first two weeks of July. Prices the second week of July were somewhat stronger than the first week, averaging $118-119/cwt. , but trade volume was very light both weeks. Trade volume at Dodge City the third week of July was also very small with no comparable quality light weight steer prices to report, according to USDA. During July and August 2001 Dodge City prices for 300-400 pounds steers averaged about $117 and $120/cwt., respectively.
Larger volumes of light weight steers and heifers have traded at other markets. At the McCook, NE July 15th sale, prices for 300-400 pound steers averaged $115/cwt. , whereas steers weighing from 400-500 pounds averaged $103-$104. At the same sale, heifers weighing from 200 to 300 pounds averaged $104/cwt. , whereas heifers weighing 300 to 400 pounds averaged about $103/cwt. For producers trying to conserve feed resources, selling early weaned calves now at these price levels appears to be a good strategy.
Cull Cows Early
Cow movement has picked up in recent weeks, but beef cow slaughter
has not increased as much as reported movement at auctions, indicating
that the bulk of productive cows being sold in the West and Great
Plains are still headed to better pastures elsewhere, instead
of to slaughter. For example, for the four week period ending
the first week of July, beef cow slaughter was up just 1.9% compared
to a year ago. From mid-June to mid-July, boning utility cow
prices at Dodge City averaged near $46 per cwt. , 8% below 2001.
Prices for lower quality cutter cows at Dodge City have been lower than for boning utility cows, dropping into the upper $30's in recent weeks. From mid-June to mid-July, cutter cow prices at Dodge City averaged about $40 per cwt., 6.5% below a year ago.
Research indicates that expected dressing percentage explains much of the price variation across individual lots of slaughter cows, adjusted for changes in market conditions (i.e., shifts in slaughter steer and heifer prices). This year there are more drought stressed cows, with low expected dressing percentages, at auctions than is normal. These cows have been trading at lower prices than those quoted for either the boning utility or cutter categories. For example, some of the low dressing percentage cows have changed hands at prices in the low $30's.
Most cow-calf producers in the Great Plains and West will find
culling early advantageous this year. Slaughter cow prices follow
a strong seasonal pattern. Prices are weakest in the fall when
cull cow supplies are generally largest and then trade above the
annual average from February through August. But this year's
drought induced culling could shift the seasonal price pattern
ahead, leading to an earlier than normal decline in slaughter
cow prices. So, if you need to reduce your herd size because
of drought, consider culling now rather than later.