Calf prices remain lower as fall run begins
Drought Monitor Update October 1
Montana Drought Monitor Update, October 1, 2015. Click image to learn more.
Moderate to Extreme drought continues along and west of the Divide with no significant changes in recent weeks. For this week’s analysis, above-normal temperatures prevailed across much of the country, seasonably dry weather continued over the western U.S. Hot, dry conditions prevailed, with temperatures averaging more than 10°F above normal. Despite the 90-degree readings and a lack of rain during the period, changes to this week’s drought designation were generally minor.
The NWS 6- to 10-day outlook for October 6 – 10 calls for above-normal precipitation and near- to above-normal temperatures nationwide, with drier-than-normal conditions confined to the lower Southeast.
View the most current Montana conditions from the U.S. Drought Monitor.
Montana Weekly Auction Report – October 2
Market: Billings Livestock, Public Auction Yards, Miles City
Receipts: NA; Last Week 4,574; Last Year NA
Compared to last report: No report available at this time.
Read more in USDA’s latest Montana Weekly Market Report.
National Feeder & Stocker Cattle Summary – October 2
Receipts This Week: Total 249,800 – 170,300 (Auctions); 53,200 (Direct); 26,300 (Video/Internet)
Compared to last week: yearling feeder cattle started the week 3.00-5.00 lower then turning mostly 5.00-10.00 lower as the week progressed. Calves traded mostly 5.00-15.00 lower.. Calf prices have lost a third of their value in just a few short months, as any class of feeder calves do not look attractive to buy as the bottom continues to succumb in this market free-fall. Some of the best 500 lb steer calves are now looking at 2.00/lb or less in many areas. Fear seems to be a very good motive that is driving this feeder cattle and fed cattle market as the cash market searches for a bottom.
Last Friday’s limit higher move in the Live and Feeder cattle futures was nothing more than a mirage. Cash fed and feeder cattle prices along with the futures continue to slide into a black hole as the inability to draw any kind of interest into this market has uncertainty dominating the picture as huge losses continue in the cattle complex. The “calf run” is beginning to start and with wide price spreads for similar weight and class calves depending on if they are weaned and have a health program or if they are right-off the cow, severe discounts will more than likely be seen.
With record heavy carcass weights and record highs for the number of cattle grading choice, Choice boxed-beef has lost over 55.00 from the May record high to current.
Corn Belt farmers are in the middle of harvest with 18% of the corn crop completed a bit behind the 5 year average at 23% with 68% still rated good to excellent. Soybean harvest is 21% harvested, compared to the 5 year average of 16% with 62% rated good to excellent.
Auction volume included 47% weighing over 600 lbs and 35% heifers.
Read more from the USDA’s latest National Feeder & Stocker Cattle Summary.
Weekly Montana Hay Report – October 2
Compared to last week: Alfalfa was steady to 10.00 lower this week on light to moderate demand and light to moderate movement. Producers are beginning to wrap up 3rd cutting and many have it priced, however limited movement has been seen to test the market. Rain is currently falling across many parts of the state which is both a relief for wildfire concerns as well as a hindrance for producers putting up high quality 3rd cutting.
Grass hay was mostly steady this week with mostly light movement seen. Feeder quality hay has come under pressure in the last couple of weeks as cattle produces have been looking hard for bargains as calf prices have fallen significantly since June.
- Alfalfa:
- Supreme: Small Squares, 200.00-225.00
- Premium: Large Squares, 180.00
- Good: Large Squares, 150.00-170.00
- Fair: Large Squares, 110.00-140.00; Large Rounds, 120.00
- Grass:
- Alfalfa Mix Premium: Large Squares: 170.00; Good Large Rounds, 125.00-140.00
- Good: Large Squares, 135.00; Large Rounds, 115.00-120.00
- Fair: Large Squares, 80.00; Large Rounds, 100.00
- Timothy Grass:
- Premium: Small Squares, 180.00-225.00
- Good: Large Rounds, 120.00; Small Squares, 150.00
- Barley Straw:
- Large Squares, 40.00-55.00