Although drought persists in the Plains, Oklahoma forage conditions improved greatly this summer, said Oklahoma State University Livestock Marketing Specialist, Derrell Peel, in a report titled Cow-Calf Corner.
In late April, at the peak of drought this spring, more than 64% of Oklahoma had some degree of dry or drought conditions with about 50% of the state in severe to exceptional drought in the weekly National Weather Service’s Drought Monitor, Peel said. In mid-August, just 5.35% of the state had severe or worse drought.
PASTURE CONDITIONS IMPROVE
In May, the first 2023 seasonal NASS conditions report showed that 54% of Oklahoma ranges and pastures were in poor or very poor condition, he said. July was the seventh wettest July on record in Oklahoma with most of the rain coming in the first half of the month.
By mid-July just 8% of ranges and pastures were rated poor to very poor, Peel said. By mid-August, hot, dry weather decreased Oklahoma range and pasture ratings pastures to 20% poor to very poor.
The USDA’s August Crop Production report estimated 2023 alfalfa and other hay production for Oklahoma total hay production to be up 58.2% year over year from the drought-reduced levels of 2022 and up 18.3% over the 20-year average from 2002-2021, he said. Total US hay production was forecast to be up 5.3% year over year.
OTHER HAY PRODUCTION
Other hay production in Oklahoma is up 60.3% year over year, and alfalfa hay production is up 41.8%, Peel said. Other hay typically makes up about 88% of total hay production in Oklahoma and 2023 production of other hay in Oklahoma is the highest on record in data back to 1974.
Other hay production is up because of a 17.9% increase in harvested other hay acreage over last year and a 36% year over year increase in other hay yield, Peel said. In 2023, Oklahoma is the number two hay producing state following Texas and out-ranks several major hay producing states that typically produce more hay, including Missouri, California, Nebraska and South Dakota.
RESTORED SUPPLIES
The sharp increase in hay production will restore Oklahoma’s supply to more typical levels after the drought-reduced level last year, he said. This is despite the May 1 hay stocks level that was equal to the low level in 2007 and the lowest since 1979.
The total hay supply for the coming year is the sum of May 1 hay stocks (beginning of hay crop year) plus current year hay production, he said. Recovery in forage conditions should allow cattle producers to stabilize herd inventories and likely begin some heifer retention.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $178.86 per cwt to $189.46, compared with last week’s range of $180.00 to $191.12 per cwt. FOB dressed steers, and heifers went for $283.97 per cwt to $293.58, compared with $283.74 to $293.54.
The USDA choice cutout Thursday was up $0.58 per cwt at $317.63 while select was up $0.32 at $291.91. The choice/select spread widened to $25.72 from $25.46 with 84 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.70 to $1.90 a bushel over the Sep corn contract, which settled at $4.72 1/4 a bushel, down $0.04.
No contracts were tendered for delivery against the Aug cattle contract Thursday.
The CME Feeder Cattle Index for the seven days ended Wednesday was $245.14 per cwt, up $0.39. This compares with Thursday’s Aug contract settlement of $246.50 per cwt, up $1.47.