Locally, the corn harvest is moving at a rapid pace, and producers have already moved cows into stalks and stubble. While fall has been dry, there was solid forage production earlier in the season, resulting in lower feed costs for much of the region. A few weeks ago, the expected profit from backgrounding, (adding weight to newly weaned calves), penciled out at very high levels. Calf prices have since moved higher, but the relationship between prices suggests more changes are expected in the short run.
Consider a cow-calf producer looking to retain ownership of a calf from November 2024 through March 2025. A steer calf weighing 550 pounds could be fed a corn and hay ration to reach a target weight of 800 pounds. A proxy ration of 15.5 bushels of corn and 1.1 tons of hay would give the weight gain during that timeframe. The weighted average price for 550-pound steers sold in South Dakota last week was $320 per cwt, while corn was $3.60 per bushel and hay was $95 per ton. Thus, the calf was worth $1,760, and the feed was $160 per head.
October 22, 2024
By Matthew Diersen
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