In today’s Beef Buzz, senior farm and ranch broadcaster Ron Hays speaks with Scott McCornack of National Livestock about cattle movement at the Oklahoma National Stockyards, shifting market conditions, and how recent rains could shape cattle numbers heading into summer.
McCornack said Oklahoma City saw a large run of feeder cattle this week as the final groups of calves continue coming off wheat pasture grazing programs. “We had close to 5,200 to 5,500 head of feeder cattle,” McCormack said. “A lot of cattle coming off wheat, and a lot of fleshy cattle. The yearlings really packed on the pounds.”
Even with dry conditions and shorter wheat in some areas, McCornack said cattle still performed well on pasture this spring. He expects the wheat grazing run to wrap up soon as more traditional calf runs begin to appear. “I think we’ll see this week and next, and then the wheat run will be close to the end,” he said. “We’re starting to see some softer, unweaned calves show up.”
Market Volatility Creates Uncertainty
While the cash market remains active, McCornack noted that futures market volatility has created some uncertainty for producers and buyers alike. “It was five to ten cheaper Monday,” he explained. “The board has been pretty volatile the last week and a half, and that’s kind of made some uncertainty. But it’s pushed up later in the week here and looks like it’s headed in the right direction.”
Despite the swings, demand for calves remains strong, especially for heavier, weaned cattle. “As high as these prices are, it’s a good time to pack on the pounds and get your calves as big as you can to get that premium,” McCornack said.
He added that the current market strongly favors cow-calf producers. “The cow-calf guy is extremely happy,” he said. “He’s kind of in the driver’s seat right now. These calves are bringing a premium they’ve been waiting for for several years.”
At the same time, he noted pressure is building for backgrounders and yearling operators. “The margins on a background or yearling guy are getting cut pretty thin,” McCornack said. “When this board backs up six to ten dollars a week like it has, it makes it pretty tight.”
Rainfall Will Be the Key Factor
According to McCornack, weather conditions over the next several weeks will play a major role in determining cattle movement and herd rebuilding decisions. “We’ve had several good rains here the last week or so, and we kind of need to keep that going forward or it’ll change pretty fast,” he said.
While parts of eastern Oklahoma are in decent shape, western Oklahoma continues struggling with drought conditions. “You get west of Oklahoma City 40 to 50 miles, and it’s still extremely dry out there,” McCornack said. “Northeast Oklahoma seems to be in pretty good shape, and southeast Oklahoma seems to be in pretty good shape.”
Looking ahead, he expects lighter sale numbers if grass conditions continue improving. “I think we’re going to see lighter numbers at the sale,” he said. “If there’s ample grass, they’re going to try to get that cheap gain on some of these calves.”
Producers Beginning to Retain Heifers
McCornack also said some producers are beginning to hold back replacement females as optimism slowly builds around herd expansion. “We are seeing that in areas,” he said. “Several heifers have been retained for breeding heifers.” or other purposes.
Still, he cautioned that weather will determine how aggressive producers can be moving forward. “I really think weather is going to dictate that,” McCormack said. “If we fall off into a drought this summer, it’s going to be hard to retain heifers and keep building the cow herd.”
He added that continued rainfall would not only support pasture conditions but also help producers rebuild hay supplies. “If it’ll keep raining, we’ll get some hay inventory back up, and that’s going to be a big factor also,” he said.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Ag Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR above for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
