As they do year after year, feedlot managers will manage and balance a multitude of factors in 2021, said Oklahoma State University Livestock Marketing Specialist Derrell Peel in a letter to Extension agents called Cow/Calf Corner.
Feedlots will deal with things like winter weather, rising feed costs, the mix of steers and heifers and the availability of feeder cattle of various sizes, Peel said.
FEEDLOT INVENTORY
The Nov. 1 cattle on feed inventory was 11.97 million head, up 1.3% from a year earlier, Peel said. Feedlot placements the past five to six months account for the current inventory and consisted of 22% feeders under 600 pounds; nearly 18% from 600-700 pounds; 22% from 700-800 pounds; 23% weighing 800-900 pounds, and 15% weighing more than 900 pounds.
The latest quarterly inventory report showed feedlot inventories include 62.4% steers and 37.6% heifers, Peel said. This compares with a year ago when feedlot inventories included 60.8% steers and 39.2% heifers.
Feedlot placement weight is related to finished weight of fed cattle, but the relationship is not one to one, he said. For steers and heifers in the typical range of placement weights, a one-pound increase in placement weight results in 0.5 pound of additional finished weight.
WEIGHT GAINS UP
Kansas Focus on Feedlots data showed feedlot Average Daily Gains have been higher than a year earlier every month this year, Peel said. Steer ADG has averaged 3.53 pounds the past six months and heifer ADG has averaged 3.11 pounds.
A study of southern plains feedlot reports shows the lowest ADG for April/May closeouts and the highest for December/January closeouts, Peel said. The April/May closeouts include higher proportions of lightweight placements the previous fall.
ADG for steer placements weighing 550-600 pounds is 3.47 pounds compared with 3.86 for those weighing 750-800 pounds.
Kansas feedlots also reported better feed efficiency in 2020 compared to 2019. Like ADG, feed efficiency reflects size and gender of cattle on feed, weather conditions and feed quality.
While ADG is positively related to placement weight, feed efficiency is inversely related to placement weight, Peel said. Steers placed weighing 550-600 pounds have an average feed/gain ratio (dry matter) of 5.7 compared with 750- to 800-pound steers with a feed/gain ratio of 5.97.
HEALTH BETTER
It appears that general animal health has been better this year as well, he said. Kansas feedlots reported lower death loss in the first nine months, compared with last year.
For steers, average death loss through September has averaged 1.67%. In a multi-year study, average feedlot death loss for 550- to 600-pound steers was 3.07% compared with 1.68 percent for steers weighing 750-800 pounds.
CATTLE, BEEF RECAP
Fed cattle trading was reported in the Plains this week at $110 to $112 per cwt on a live basis, steady to up $1 from last week. Dressed-basis trading was reported at $172 to $174 per cwt, steady to up $2.
The USDA choice cutout Wednesday was down $2.51 per cwt at $240.89, while select was off $0.13 at $222.95. The choice/select spread narrowed to $17.94 from $20.32 with 86 loads of fabricated product and 37 loads of trimmings and grinds sold into the spot market.
The USDA reported Wednesday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.05 to $1.09 a bushel over the Dec CBOT futures contract, which settled at $4.19 a bushel, up $0.04 1/4.
The CME Feeder Cattle Index for the seven days ended Tuesday was $139.87 per cwt, down $0.43. This compares with Wednesday’s Jan contract settlement of $141.80 per cwt, up $0.15.