Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   

Beef Buzz News


Calendar Year 2012 Could Yield Biggest Average Losses Per Head in Feedlots- Ever

Wed, 18 Jul 2012 05:27:12 CDT

Calendar Year 2012 Could Yield Biggest Average Losses Per Head in Feedlots- Ever The summer of 2012 is turning out to be a very grim time to be in the cattle feeding business- so says the Director of the Livestock Market Information Center, Jim Robb. We continue our conversation on today's Beef Buzz with Robb, who details the June results of the Center's analysis of cattle feeding returns. Robb says 2012 is shaping up to be a horrendous year for the cattle feeding segment of the beef cattle business- perhaps the worse ever from a financial point of view. Click on the LISTEN BAR below to hear his comments- and the following is the LMIC's take on the current bloodbath that is underway in feedlot country.



"Red ink in the cattle feeding business has turned from a headwind into a full force derecho due to high feedstuff costs. (A derecho is defined by meteorologists as widespread thunderstorm spawned straight-line damaging ground winds of up to 100 miles per hour that lasts for hundreds of miles.) Cattle feeders were hoping that lower feedstuff costs to help profits; but that has become increasingly problematic. The result has been much weaker calf prices and struggling heavy yearling prices. Calf prices have been pressured more than heavyweight yearlings by the confluence of drought impacts on both pastures and feedstuff costs.


"The LMIC has been estimating monthly cattle feeding returns since the mid 1970's based on feeding-out a 750 pound steer at a commercial feedlot in the Southern Plains. For steers sold in July of this year on the cash market, an average quality steer lost more money than ever before, over $250.00 per head. The largest losses before last month were in late 2008 and early 2009 at about $230.00 per steer. High feeder cattle costs and surging feedstuff costs during the feeding period greatly compounded what were most likely going to be unprofitable cattle from the time they entered the feedlot. At least well into the fall quarter of this year, red ink will continue on fed cattle sold.


"Calendar year 2012 will be the worst ever for cattle feeders, as calculated by the LMIC. Assuming the same number of cattle are sold every month, losses in 2012 will probably exceed $140.00 per steer eclipsing 2008's disaster (-$126.00). Of course, many cattle feeders do much better than the LMIC calculations using superior management and marketing, including risk mitigation. Still, nobody will be unscathed this year. The level of red ink in 2012 will provide a headwind for calf and yearling prices for a least a few more months."


The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.



   
   

Ron Hays Beef Buzzes with Jim Robb of the LMIC on current feedlot profitability
right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 

Beef News

  • NCBA's Ethan Lane Voices Concerns with the Cattle Price Discovery and Transparency Act of 2022  Fri, 24 Jun 2022 08:57:35 CDT
  • Cattle Price Discovery and Transparency Act of 2022 Passes with Objections  Thu, 23 Jun 2022 13:14:46 CDT
  • Notable Increase in the Cost of Gain in Feedlots for 2022 says Dr. Glynn Tonsor  Wed, 22 Jun 2022 16:13:24 CDT
  • Dan Halstrom Anticipates More Billion-Dollar Sale Export Months for Beef Exports but Warns of Headwinds   Tue, 21 Jun 2022 09:57:08 CDT
  • USMEF's Dan Halstrom Sees Signing of Ocean Reform Act Helping U.S. Meat Exporters Be Reliable Suppliers  Mon, 20 Jun 2022 13:23:18 CDT
  • A.J. Tarpoff Provides Medical Explanation for Cattle Deaths in Kansas  Fri, 17 Jun 2022 10:13:21 CDT
  • Unusual Heat Conditions in Southwestern Kansas Result in Feedlot Cattle Deaths  Thu, 16 Jun 2022 09:22:24 CDT
  • Montie Soules, CEO of the American Shorthorn Association, Promotes America's First Breed  Wed, 15 Jun 2022 10:23:32 CDT
  • Cattlemen's Congress: The Show by Cattle Producers for Cattle Producers  Tue, 14 Jun 2022 10:08:29 CDT
  • New Potential Listing Under Endangered Species Act to Cause More Regulatory Burden for Producers  Mon, 13 Jun 2022 10:20:48 CDT
  • Derrell Peel Analyzes Multiple Reasons Ground Beef Market Holding Strong  Fri, 10 Jun 2022 09:52:14 CDT
  • NCBA Hopeful the Supreme Court Will Provide Clarity on What is a WOTUS   Thu, 09 Jun 2022 10:23:34 CDT
  • Cattle Producers Voice their Concerns at WOTUS Roundtable  Thu, 09 Jun 2022 04:12:49 CDT
  • Dr. Wesley Tucker Advises Ranchers Against Overstocking to Increase Revenue in the Long Run   Tue, 07 Jun 2022 09:37:16 CDT
  • New Technology Allows Ranchers to Control Mesquite Better than Before, says Brian Cain with Bayer  Mon, 06 Jun 2022 13:36:29 CDT
  • Cattle Numbers and Prices to be Impacted by Poor Pasture and Range Conditions  Fri, 03 Jun 2022 10:35:00 CDT
  • OCA Executive Vice President Michael Kelsey Believes Attorney General O'Connor is a Good Fit for Agriculture  Thu, 02 Jun 2022 10:10:35 CDT
  • China Phase One Trade Deal a Success for U.S. Beef  Wed, 01 Jun 2022 09:30:45 CDT
  • Robin Reid Urges Producers to Sign up for the USDA's LFP Program to Receive Assistance During Drought  Tue, 31 May 2022 15:21:05 CDT
  • Congressman Frank Lucas Waits on DOJ Decision on Possible Criminal Wrongdoing by Big Four Packers  Mon, 30 May 2022 09:32:15 CDT
  • David Lalman Stresses the Value of Being Proactive Before Poor Forage Condition Arise  Thu, 26 May 2022 11:01:27 CDT
  • NCBA's Mary Thomas Hart Wants to Push Back Proposed SEC Reporting Rule  Wed, 25 May 2022 10:41:26 CDT
  • Strong Marketings Key to Working Through Record Cattle Numbers in US Feedlots  Tue, 24 May 2022 08:06:28 CDT
  • Cattle on Feed Report Shows Biggest May First Inventory Since 1996- Drought Pushing Cattle Into Feedlots  Sat, 21 May 2022 15:01:06 CDT
  • Lance Zimmerman with Cattlefax Offers Cow Calf Producers Strategies for Success  Fri, 20 May 2022 08:44:10 CDT
  • Kent Bacus says NCBA is Committed to Promoting Trade to Benefit US Cattle Producers  Thu, 19 May 2022 09:54:10 CDT
  • John Butler with the Beef Marketing Group Communicates to Consumers that the Beef Industry is Sustainable   Wed, 18 May 2022 09:46:15 CDT
  • John Butler with Beef Marketing Group Aims to See All Segments of the Beef Industry Working Together  Tue, 17 May 2022 09:44:42 CDT
  • Fewer Pounds of Beef Coming in the Beef Pipeline  Mon, 16 May 2022 09:02:35 CDT
  • NCBA's Colin Woodall Gives Credit to Cattle Producers for Always Being Sustainable  Fri, 13 May 2022 11:08:03 CDT
  • Dakota Moss Describes Benefits of Utilizing an LRP Program for Cattle Producers  Thu, 12 May 2022 09:53:54 CDT
  • Historically Poor Pasture Conditions to Hit Beef Supplies Ahead  Wed, 11 May 2022 11:31:21 CDT
  • Six Years After Repeal, Senator John Thune Still Wants Mandatory Country of Origin Labeling  Tue, 10 May 2022 09:39:50 CDT
  • USMEF's Erin Borror Suspects Increased Herd Liquidation May Lead to Tighter Supplies in the Future  Mon, 09 May 2022 12:29:27 CDT
  • USMEF's Erin Borror Sees Growth in US Beef Exports for the Remainder of 2022  Fri, 06 May 2022 10:13:22 CDT

  •  

    Beef Buzz Archives

    Old Archives  |   2010  |   2011  |   2012  |   2013  |   2014  |   2015  |   2016  |   2017  |   2018  |   2019  |   2020  |   2021  |   Jan 22  |   Feb 22  |   Mar 22  |   Apr 22  |   May 22  |   Jun 22  |   Jul 22  |   Aug 22  |   Sep 22  |   Oct 22  |   Nov 22  |   Dec 22
       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Oklahoma City Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.
       

       

    Search OklahomaFarmReport.com

    © 2008-2022 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.