Ample, economical forage supplies affecting decisions throughout live side of supply chain.

July 16, 2019

2 Min Read
beef cows and calves
steve everts/iStock/Thinkstock

Range and pasture rated in either good or excellent condition as of July 16 stood at 68%, according to the U.S. Department of Agriculture’s National Agricultural Statistical Service. In 2018, only 47% of pasture was in good or excellent condition. At the other end of the spectrum, 8% of pasture was rated in poor to very poor condition, compared to 24% a year ago.

USDA recently noted that June 2019 was the wettest June for the lower 48 states since 1995. It was also the wettest spring on record for Kansas and was among the top 10 wettest on record for three Plains states (Nebraska, Oklahoma, and South Dakota) and five Midwestern states (Illinois, Indiana, Iowa, Missouri and Wisconsin).

According to the Livestock Marketing Information Center (LMIC), states with 40% or more of their pastures rated as very poor to poor in early July accounted for only 1.5% of the beef cow herd, while a year ago, that figure was 29% of the beef cow herd. Meanwhile, 96% of the beef cow herd is in states with 40% of pastures rated good to excellent this July versus 62% a year ago.

The ample, economical forage supplies have been affecting decisions throughout the live side of the supply chain, LMIC explained.

Beef cow slaughter was up by a small percentage during the first three months of the year but rose to a 9% increase in April. That trend changed in May, when beef cow slaughter returned to year-earlier levels. Weekly slaughter in June has followed a similar pattern. LMIC said the flow of cattle into feedlots was up 9% from a year earlier in April but ebbed to a 3% decline in May.

Will the abundant pasture forage have an impact on breeding stock inventory decisions? LMIC said the plunge in calf prices is hard to ignore. 

“Steer calves at Oklahoma City weighing 500 lb. dropped $22/cwt. from April to June. Last year, the decline over the same interval was only $7, and in 2017, calf prices went up $3,” LMIC said.

In 2016, monthly average calf prices decreased $26/cwt. from April to June, LMIC said.

The last time pasture ratings were close to this year was 2015, when 66% of pastures were rated good/excellent, LMIC noted. During that year, the beef cow herd added 1 million head, and calf prices declined $6 from April to June, but they still averaged $285/cwt. in June, compared to $161 this June.

Subscribe to Our Newsletters
Feedstuffs is the news source for animal agriculture

You May Also Like