Across much of the US, as cow/calf producers move further into autumn, cattle producers increasingly are deciding whether to retain or market reproductively sound females, said the Livestock Marketing Information Center on its website.
Thursday’s National Weather Service drought monitor said the High Plains had heavy to excessive rain in the latest week ended last Tuesday, Oct. 14, in the higher elevations of Colorado, and most portions of the state had at least three inches of precipitation. However, elsewhere in the region precipitation was light to moderate with the heavier amounts scattered.
The West reported late-season tropical moisture into the Four Corners, the NWS said.
A key factor in that decision is the condition of grasslands, the LMIC said.
SOUTHERN PLAINS CONDITIONS
The most recent USDA-NASS Crop Progress report (Sep. 28) showed range and pastureland rated poor and very poor at 21% and 30.6% in the Southern Plains and Great Plains, respectively, the LMIC said.
In the Southern Plains, conditions were among the best observed in the past decade, with the share of poor and very poor acres down 19.5% from the same week last year, the LMIC said.
The Great Plains have not fared quite as well, though major improvements since early summer have brought conditions back close to the 10-year average, with poor and very poor ratings down 11.4% year over year, the LMIC said.
PASTURE IMPROVEMENTS HELP
Those improvements have supported lower feeding costs this season, the LMIC said. With grass more abundant, producers have benefited from lower hay prices, which averaged $158 per short ton in August, down 4.8% from a year earlier and 36% less than the peak set in August of 2022.
According to the USDA and the National Drought Mitigation Center, as of Oct. 7, only 25% of cattle were located in drought-affected areas, a sharp improvement from 43% last year and 70% in 2022, the LMIC said.
LOOKING AHEAD
Looking ahead, the National Weather Service projected a warmer and drier-than-normal outlook for October through December, the LMIC said. Still, Grass-Cast forecasts developed by Colorado State University, the USDA, NDMC, and the University of Arizona indicated net primary production of grasslands through 2025 should remain positive relative to the 36-year average.
The Southern Plains, along with parts of northwest South Dakota, southwest North Dakota and southeast Montana, were expected to see growth exceeding 15%, the LMIC said. Most other areas of the Great Plains were forecast to remain near the long-term average, though some northern regions could experience declines of 5% to 15%.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $237.30 per cwt to $243.00, compared with last week’s range of $234.39 to $237.11 per cwt. FOB dressed steers and heifers went for $368.29 per cwt to $374.33, compared with $365.05 to $373.86.
The USDA choice cutout Tuesday was up $2.75 per cwt at $371.938 while select was down $0.89 at $352.57. The choice/select spread widened to $19.36 from $15.72 with 115 loads of fabricated product and 13 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $410.44 per cwt, and 50% beef was $138.83.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.00 to $1.10 a bushel over the Dec corn contract, which settled at $4.19 3/4, down $0.03 1/2.
No new live cattle delivery intentions were tendered Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $372.99 per cwt, down $3.16. This compares with Tuesday’s Oct contract settlement of $372.92, down $0.02.