Northern Ag Network
Northern Ag Network
Northern Broadcasting System    Northern News Network    Northern Sports Network
Search This Site...
Search This Site...

Featured Stories

Cattle Feeding Returns Surge

Cattle Feeding Returns Surge

6/19/2017 5:59:00 AM/Categories: General News, Today's Top 5, Livestock

The Livestock Marketing Information Center (LMIC) has been estimating monthly cattle feeding returns for commercial Southern Plains feeding since the mid 1970’s. There can be lots of debate/discussion of the calculation assumptions made in estimating returns (LMIC’s are not based on surveys of producers). 

LMIC’s were developed to facilitate market analysis and the assumptions are rather fixed, for example the animal being fedout is always a 750-pound steer. Monthly average cash market steer prices reported by USDA-AMS (Agricultural Marketing Service, Market News Division) are used. Results provide a barometer (e.g. year-over-year direction of change) of returns above all economic production costs.

Estimated returns surged for cattle sold during the first five months of 2017. After posting record large losses in 2015 and continuing to gushing red ink during most of 2016, January through May of this year were the best consecutive five months ever. The prior five month record high was set in late 2003. Profitability has been due to modest feedstuff costs, large year-over-year drops in feeder cattle prices, and strong fed cattle prices.

On a monthly basis, fed cattle sold in May had the second highest profit level ever in the LMIC calculations, barely behind October 2003’s. May’s return was over $270.00 per steer above a year ago. For the month of May, in percentage terms compared to a year ago, closeouts margins were increased by a 6% drop in feedstuff cost, 15% decline in feeder steer cost, and a 6% increase in slaughter steer sales price per cwt.

Cattle feeding profitability has allowed producers to aggressively buy feeder animals. The result has been higher feeder cattle prices and more steers and heifers placed on-feed than a year ago. Stronger feeder steer prices have raised breakeven sale prices for cattle feeders. Steers put on-feed in May had breakeven sale prices at well over $120.00 per cwt., the highest in 10 months. Monthly Cattle on Feed reports from USDA-NASS show the number of cattle placed into feedlots during the first four months of 2017 was the largest for that timeframe since 2000. 

Source: Drovers

Photo Credit: Flickr

 
Print
Tags:

Leave a comment

Name:
Email:
Comment:
CAPTCHA image
Enter the code shown above in the box below
Add comment

Name:
Email:
Subject:
Message:
x

Recent Ag News

Ranchers Want WOTUS Repealed Once and for All

8/18/2017 9:41:00 AM
The Environmental Protection Agency has extended the deadline to submit comments on the Waters of the U.S. Rule repeal effort.  >> Read More
Article rating: No rating

Barringer's Ranch

8/17/2017 4:48:00 PM

Ashland Montana 1899.

>> Read More
Article rating: No rating

Into the Black

8/17/2017 4:16:00 PM

The stories of a strong ranching community in Eastern Montana.

>> Read More
Article rating: No rating

Fire is GOOD for Soil, Right? Well, Not Always

8/17/2017 3:16:00 PM

It burns up everything awful fast, but how quickly soil and vegetation recover from a fire depends on...

>> Read More
Article rating: No rating

Clean Water Act Settlement

8/17/2017 11:15:00 AM
OMAHA (DTN) -- California wheat farmer John Duarte has agreed to pay $330,000 in fines and to undertake mitigation on his farm for alleged Clean Water Act violations, according to a consent decree filed in a federal court in California on Tuesday. >> Read More
Article rating: No rating
RSS

Find Articles by Date

«August 2017»
MonTueWedThuFriSatSun
2456
8111213
14181920
21222324252627
28293031123
45678910