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Forage Focus: Get Ready to Graze - Rory Lewandowski, Extension Educator, Athens County
Here we are at the beginning of another grazing season. Actually, for some graziers, the grazing season continued pretty much the entire year, so it might be more accurate to say that here we are at the beginning of another season of pasture grass growth. With good soil moisture, good soil fertility, cool soil temperatures, warm, but not hot, air temperatures, our cool seasons grasses are posed for rapid growth. The grazier must be ready to utilize his/her livestock to harvest this vegetative production and turn it into meat, milk and fiber. The challenge to the grazier is to maintain vegetative growth of the forage plant throughout the grazing season. The challenge is greatest during the spring when the grass plant is exerting tremendous effort to stay in reproductive growth. So, before plant growth explodes, now is the time to review some basic plant morphology (external changes) and physiology (internal/chemical changes).
Plant morphology can be understood in terms of plant development. The basic unit of the grass plant is the tiller. Tillers are composed of a growing point, leaves, roots, stems, nodes (joints) and dormant buds. Individual tillers and individual leaves on a tiller both have a limited life span. Depending upon when in the growing season a tiller is developed, the life span could be up to a year, but frequently is measured in terms of months or even weeks. A tiller population in a pasture is maintained by continuous replacement/development of tillers. The story is similar for leaves on an individual tiller.
Let's move now to the physiology behind reproductive growth. While reproductive tillers become visible in the grass plant during the spring of the year, those tillers were actually induced to reproductive growth the preceding fall. Cool season grasses, which make up the bulk of most graziers pastures in Ohio, require a period of cold temperature, four weeks or longer of 40 degree F and lower, together with long nights to initiate flower buds on the crown of the plant. This process is called floral induction. In the spring of the year new growth begins by drawing upon the carbohydrate reserves stored in the plant roots. New tillers develop and produce leafy material, remaining in the vegetative stage in early spring. However, at some point the decreasing night length (longer days) acts as a trigger to send a message to induced tillers that it is now time for reproductive growth. The tiller responds by entering the jointing stage where internodes (the area between nodes) are elongated and stem formation begins. The priority now shifts to seed development and further leaf production on the tiller ceases. A seed head is developed and pushed out of the tiller. At boot stage, the seed head is just about ready to emerge from the last elongated node area and is still wrapped in a leaf sheath. Once the seed head emerges the reproductive stage continues with flowering, seed development, seed growth and seed maturation.
Once reproductive growth is initiated, it may seem that all the grass plants tillers are coming into head at the same time. The realty is that there is a range of maturity among tillers and not every tiller is a reproductive tiller. Only those tillers induced the preceding fall have the capacity to produce a stem and seed head; the new tillers developed in the early spring do not have this capacity. However, reproductive tillers dominate the grass plant because they shade out the vegetative tillers and in addition, hormones produced in reproductive tillers as seeds mature retard or inhibit the development of other vegetative tillers. The grass plant will not return to vegetative growth until the seed head is mature, or the process is interrupted by the removal of the reproductive tiller. Remember, the plant's priority is to put its resources into the development of a mature seed, not to produce high quality vegetative material.
The apical meristem or growing point of the vegetative grass plant is at or near soil level and so is protected from grazing livestock. A vegetative tiller will continue to develop new leaves as long as growing conditions are favorable due to this protected position of the growing point. Once a tiller enters reproductive growth, marked by stem elongation, the growing point is no longer protected and moves up the plant as the stem elongates. The growing point in a reproductive tiller is generally found just below the last completed node. This elevated growing point is vulnerable to being eaten off by livestock. If the growing point has been eaten off, re-growth has to come from development of a new tiller.
Tiller growth from buds is dependent upon defoliation and the resulting light penetration to the base of the plant. If all the tillers that were induced into reproductive growth the preceding fall can be clipped off once they begin seed head formation, the remaining plant growth will be stay vegetative through the rest of the growing season because reproductive tillers are only initiated under fall conditions. Therefore, a management principle has become that seed heads must be avoided through grazing or mechanical clipping to keep plants in vegetative growth and to keep plants developing tillers. The wrinkle in this is that since not all reproductive tillers on a grass plant are of the same maturity and are expressing themselves at the same time, it will take several clippings throughout the spring and early summer season to get all the reproductive tillers clipped.
While some graziers may prefer to wait until most of the reproductive tillers have developed seed heads before clipping later in the grazing season, the trade-off is a sacrifice of some yield and quality as some vegetative tillers die-off due to shading. Trying to avoid seed heads through the use of grazing livestock is best accomplished by short rotation times, moving livestock quickly from one paddock to the next. Essentially the goal is to use the livestock to just graze the top couple of inches of the grass. The principle here is to match paddock rotation speed to pasture growth. When pasture grass is growing fast, rotate fast, when growth slows, slow the rotation. All of this is easier said than done. In reality, unless there is a heavy stocking rate and small paddock size, it is unlikely that grass will be grazed uniformly enough to avoid seed head formation, and some mechanical clipping will still need to be done after the grazing pass.
Understanding the how's and why's behind grass growth can help the grazier to better manage the spring flush. Enjoy the early spring vegetative growth, because once the reproductive "trigger" is pulled, the management challenge begins.
We may soon need a Pesticide Applicator Certification to control rodents on the farm - Stan Smith, Fairfield County OSU Extension
On January 17, 2007, EPA issued a proposed risk mitigation decision for nine (9) rodenticides: Brodifacoum, Bromadiolone, Bromethalin, Chlorophacinone, Cholecalciferol, Difethialone, Diphacinone, Warfarin, and Zinc Phosphide. You may recognize these materials as the ingredients in some of the mouse and rat control products we would typically utilize around Ohio farms.
An EPA summary of the proposal may be found at: http://www.epa.gov/pesticides/factsheets/chemicals/rodenticides_fs.htm If the proposal is accepted, basically it would require:
1) All products for sale to consumers (homeowners) be marketed only in tamper-proof bait stations with solid bait blocks;
2) All products containing Brodifacoum, Bromadiolone, and Difethialone would be classified as "restricted use" pesticides; and
3) All products would be required to have improved label use instructions.
Should the proposal be accepted, the shift of the three products listed above in number 2 to "restricted use" will perhaps be the most immediate concern to livestock producers. Due to the nature of their current operation, producers may not possess the ODA's Private Pesticide Applicator Certification in a category which would allow them to purchase and use the rodent control products containing the restricted materials. Thus, a "restricted use" classification would require a number of Ohio livestock producers and farmers to become certified applicators in the category which would accommodate their rodent control concerns, and then cause them to begin keeping records on the use of these products.
Under Ohio's licensing system, applicators are licensed for the "site" where pesticides are used. Mouse and rat problems in grain bins would fall under the stored grain category (Private category #10). Rodent problems in a livestock building would be under the livestock category (Private category #8). The issue that has yet to be addressed would be what category other buildings such as harvest equipment storage barns fall under. For more information regarding Ohio's Private Pesticide Applicator Certification process, visit the OSU Pesticide Education website at: http://pested.osu.edu
As is typical of such EPA proposals, there is currently a public comment period regarding the proposal which extends until May 18, 2007. Comments on the proposal may be submitted electronically or by mail.
You may submit your comments, identified by docket identification (ID) number EPA-HQ-OPP-2006-0955, by one of the following methods:
* Federal eRulemaking Portal: http://www.regulations.gov Follow the on-line instructions for submitting comments.
* Mail: Office of Pesticide Programs (OPP) Regulatory Public Docket (7502P), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-0001.
HEIFER DEVELOPMENT: Prior to Calving - Steve Boyles OSU Extension Beef Team
Heifers that calve first as 2-year-olds produce more calves during a lifetime than do heifers that calve first at three years of age or older. The decision to breed heifers as yearlings involves careful consideration of both the economics of production and such characteristics as the reproduction status, breed type and genetic make-up of the heifers involved. Differences in the age at which heifers are first exposed for breeding depend on three factors: management systems, forage quality and availability, and adaptation of respective breed types to specific environmental conditions.
PRIOR TO CALVING: A 2-year-old heifer should weight about 85% of her mature weight at first calving. They have approximately 280 days to gain the weight from breeding to calving. Bred heifers should gain about 0.7-1 lb/day from breeding to calving. Heifers may reach the target weight coming off good pasture in the fall. Heifer need only maintain their weight through the winter. Feed levels have to be increased if they have not reached their target weight by fall. It is important to provide enough feed without getting the heifers too fat at calving time. They should be at condition score 6-7 at calving.
For those heifers weighing in excess of their target weight at 18 months of age, how should they be handled? The grazing season for these heifers could be extended with protein supplementation being provided. Do not stay out on pasture, however, until body condition starts decreasing.
Inadequate nutrition creates more calving difficulty in heifers than excess nutrition. Some feel that the heifer should be limited in feed before calving so the fetus will not become too large, and consequently reduce calving difficulty. In fact, limiting nutrients to the heifer usually only slightly effects calf birth weight. The heifer will sacrifice body condition and arrest growth before diverting many nutrients from the fetus. Her thin condition affects her breed-back performance. In addition, data from Colorado shows that thin heifers have lower levels of colostrum, and consequently their calves are more susceptible to scours. Excessive nutrition often gets the blame for what is really calving problems via improper bull selection. Excessive protein has not consistently increased calving difficulty. Excessive energy can create calving difficulty. Research studies indicate calf birth weight can be increased 8-10 lbs through nutrition without increasing calving difficulty.
Alfalfa Weevil Present? - R. Hammond and B. Eisley, OSU Extension Entomologists
With warmer temperatures now occurring, alfalfa growers plan on scouting for alfalfa weevil in the coming weeks. The need for scouting is especially true in southern counties where heat unit accumulation has reached the 300 HU last week needed for egg hatch and beginning feeding. Although central and northern Ohio is behind this accumulation of heat units, growers in those areas should begin their scouting over the next 1-2 weeks. Remember that fields that have a south facing slope tend to warm up sooner and need to be checked for weevil earlier.
Alfalfa weevil scouting is accomplished by collecting a series of three 10-stem samples randomly selected from various locations in a field. Place the stem tip down in a bucket. After 10 stems have been collected, the stems should be vigorously shaken in the bucket and the number of larvae in the bucket counted. The shaking will dislodge the late 3rd and 4th instar larvae which cause most of the foliar injury. Close inspection of the stem tips may be needed to detect the early 1st and 2nd instar larvae. The height of the alfalfa should also be recorded at this time. Economic threshold is based on the number of larvae per stem, the size of the larvae and the height of the alfalfa. The detection of one or more large larvae per stem on alfalfa that is 12 inches or less in height indicates a need for rescue treatment. Where alfalfa is between 12 and 16 inches in height, the action threshold should be increased to 2 to 4 larvae per stem depending on the vigor of alfalfa growth.
See the OSU Alfalfa Weevil FactSheet at http://ohioline.osu.edu/ent-fact/0032.html for more on alfalfa weevil scouting and thresholds. For insecticides that are labeled for alfalfa weevil, see http://entomology.osu.edu/ag/545/aiaw.pdf. Remember that it is still too early to scout for potato leafhopper since they do not move into Ohio until May.
Weekly Roberts Agricultural Commodity Market Report - Mike Roberts, Commodity Marketing Agent, Virginia Tech
LIVE CATTLE in Chicago on the Chicago Mercantile Exchange (CME) finished up on Monday. APR'07LC futures closed at $100.90/cwt, up $.450/cwt and $1.900/cwt higher than last ago at this time. The JUNE'07LC also closed up and was the most actively traded on the day. It closed up $0.375/cwt at $96.70/cwt but only $0.30/cwt higher than last week. Fresh highs in feeder cattle and higher cash cattle prices were supportive of live cattle futures. Live cattle were less exciting … Er … stressful … amid light to moderate volume. One floor source was quoted as saying, "It was just a pretty dull day in live cattle." Light supplies of market-ready cattle were noted as not providing futures with enough information to really get the trading engine going well. Wholesale beef prices moved sharply higher last week in reaction to grocery store buying seen as their positioning to be ready for springtime-cookout inventory needs. As a result, there is an expectation in the market that cash cattle will trade $1/cwt-$2/cwt higher at $101/cwt-$102/cwt in the Plains feedlot markets this week. USDA raised the choice cutout on Monday $3.10/cwt from last Friday to $162.68/cwt. This was $9.33/cwt higher than a week ago at this time. According to HedgersEdge.com, the average beef plant margin for Monday was placed at a negative $13.60/head, $4.70/head better than last Friday and a whopping $33.90/head better than one week ago! Cash sellers are still encouraged to be patient with sales this week. It is still a good idea to hedge feeder cattle purchases and an even better idea to forward price feed grain inputs at this time.
FEEDER CATTLE at the CME finished well on Monday. The APR'07FC contract closed up $.775/cwt at $111.90/cwt. The MAY'07 contract closed at $112.750/cwt, up $0.900/cwt. Some feeder cattle contracts started the day sharply lower before turning up later in the day. The August, October, November, and January contracts set fresh highs. Early selling in feeders was seen as a direct reaction to gains in corn futures. Feeder cattle rebounded after corn turned lower late in the day. The latest CME Feeder Cattle Index for April 4 was placed at $108.02/cwt, up $0.96/cwt and the highest since October 19, 2006. Cash sellers should think about selling feeder cattle when they are ready in order to take advantage of these good prices. Now is still a good time to lock in more grain inputs.
Here we are at the beginning of another grazing season. Actually, for some graziers, the grazing season continued pretty much the entire year, so it might be more accurate to say that here we are at the beginning of another season of pasture grass growth. With good soil moisture, good soil fertility, cool soil temperatures, warm, but not hot, air temperatures, our cool seasons grasses are posed for rapid growth. The grazier must be ready to utilize his/her livestock to harvest this vegetative production and turn it into meat, milk and fiber. The challenge to the grazier is to maintain vegetative growth of the forage plant throughout the grazing season. The challenge is greatest during the spring when the grass plant is exerting tremendous effort to stay in reproductive growth. So, before plant growth explodes, now is the time to review some basic plant morphology (external changes) and physiology (internal/chemical changes).
Plant morphology can be understood in terms of plant development. The basic unit of the grass plant is the tiller. Tillers are composed of a growing point, leaves, roots, stems, nodes (joints) and dormant buds. Individual tillers and individual leaves on a tiller both have a limited life span. Depending upon when in the growing season a tiller is developed, the life span could be up to a year, but frequently is measured in terms of months or even weeks. A tiller population in a pasture is maintained by continuous replacement/development of tillers. The story is similar for leaves on an individual tiller.
Let's move now to the physiology behind reproductive growth. While reproductive tillers become visible in the grass plant during the spring of the year, those tillers were actually induced to reproductive growth the preceding fall. Cool season grasses, which make up the bulk of most graziers pastures in Ohio, require a period of cold temperature, four weeks or longer of 40 degree F and lower, together with long nights to initiate flower buds on the crown of the plant. This process is called floral induction. In the spring of the year new growth begins by drawing upon the carbohydrate reserves stored in the plant roots. New tillers develop and produce leafy material, remaining in the vegetative stage in early spring. However, at some point the decreasing night length (longer days) acts as a trigger to send a message to induced tillers that it is now time for reproductive growth. The tiller responds by entering the jointing stage where internodes (the area between nodes) are elongated and stem formation begins. The priority now shifts to seed development and further leaf production on the tiller ceases. A seed head is developed and pushed out of the tiller. At boot stage, the seed head is just about ready to emerge from the last elongated node area and is still wrapped in a leaf sheath. Once the seed head emerges the reproductive stage continues with flowering, seed development, seed growth and seed maturation.
Once reproductive growth is initiated, it may seem that all the grass plants tillers are coming into head at the same time. The realty is that there is a range of maturity among tillers and not every tiller is a reproductive tiller. Only those tillers induced the preceding fall have the capacity to produce a stem and seed head; the new tillers developed in the early spring do not have this capacity. However, reproductive tillers dominate the grass plant because they shade out the vegetative tillers and in addition, hormones produced in reproductive tillers as seeds mature retard or inhibit the development of other vegetative tillers. The grass plant will not return to vegetative growth until the seed head is mature, or the process is interrupted by the removal of the reproductive tiller. Remember, the plant's priority is to put its resources into the development of a mature seed, not to produce high quality vegetative material.
The apical meristem or growing point of the vegetative grass plant is at or near soil level and so is protected from grazing livestock. A vegetative tiller will continue to develop new leaves as long as growing conditions are favorable due to this protected position of the growing point. Once a tiller enters reproductive growth, marked by stem elongation, the growing point is no longer protected and moves up the plant as the stem elongates. The growing point in a reproductive tiller is generally found just below the last completed node. This elevated growing point is vulnerable to being eaten off by livestock. If the growing point has been eaten off, re-growth has to come from development of a new tiller.
Tiller growth from buds is dependent upon defoliation and the resulting light penetration to the base of the plant. If all the tillers that were induced into reproductive growth the preceding fall can be clipped off once they begin seed head formation, the remaining plant growth will be stay vegetative through the rest of the growing season because reproductive tillers are only initiated under fall conditions. Therefore, a management principle has become that seed heads must be avoided through grazing or mechanical clipping to keep plants in vegetative growth and to keep plants developing tillers. The wrinkle in this is that since not all reproductive tillers on a grass plant are of the same maturity and are expressing themselves at the same time, it will take several clippings throughout the spring and early summer season to get all the reproductive tillers clipped.
While some graziers may prefer to wait until most of the reproductive tillers have developed seed heads before clipping later in the grazing season, the trade-off is a sacrifice of some yield and quality as some vegetative tillers die-off due to shading. Trying to avoid seed heads through the use of grazing livestock is best accomplished by short rotation times, moving livestock quickly from one paddock to the next. Essentially the goal is to use the livestock to just graze the top couple of inches of the grass. The principle here is to match paddock rotation speed to pasture growth. When pasture grass is growing fast, rotate fast, when growth slows, slow the rotation. All of this is easier said than done. In reality, unless there is a heavy stocking rate and small paddock size, it is unlikely that grass will be grazed uniformly enough to avoid seed head formation, and some mechanical clipping will still need to be done after the grazing pass.
Understanding the how's and why's behind grass growth can help the grazier to better manage the spring flush. Enjoy the early spring vegetative growth, because once the reproductive "trigger" is pulled, the management challenge begins.
We may soon need a Pesticide Applicator Certification to control rodents on the farm - Stan Smith, Fairfield County OSU Extension
On January 17, 2007, EPA issued a proposed risk mitigation decision for nine (9) rodenticides: Brodifacoum, Bromadiolone, Bromethalin, Chlorophacinone, Cholecalciferol, Difethialone, Diphacinone, Warfarin, and Zinc Phosphide. You may recognize these materials as the ingredients in some of the mouse and rat control products we would typically utilize around Ohio farms.
An EPA summary of the proposal may be found at: http://www.epa.gov/pesticides/factsheets/chemicals/rodenticides_fs.htm If the proposal is accepted, basically it would require:
1) All products for sale to consumers (homeowners) be marketed only in tamper-proof bait stations with solid bait blocks;
2) All products containing Brodifacoum, Bromadiolone, and Difethialone would be classified as "restricted use" pesticides; and
3) All products would be required to have improved label use instructions.
Should the proposal be accepted, the shift of the three products listed above in number 2 to "restricted use" will perhaps be the most immediate concern to livestock producers. Due to the nature of their current operation, producers may not possess the ODA's Private Pesticide Applicator Certification in a category which would allow them to purchase and use the rodent control products containing the restricted materials. Thus, a "restricted use" classification would require a number of Ohio livestock producers and farmers to become certified applicators in the category which would accommodate their rodent control concerns, and then cause them to begin keeping records on the use of these products.
Under Ohio's licensing system, applicators are licensed for the "site" where pesticides are used. Mouse and rat problems in grain bins would fall under the stored grain category (Private category #10). Rodent problems in a livestock building would be under the livestock category (Private category #8). The issue that has yet to be addressed would be what category other buildings such as harvest equipment storage barns fall under. For more information regarding Ohio's Private Pesticide Applicator Certification process, visit the OSU Pesticide Education website at: http://pested.osu.edu
As is typical of such EPA proposals, there is currently a public comment period regarding the proposal which extends until May 18, 2007. Comments on the proposal may be submitted electronically or by mail.
You may submit your comments, identified by docket identification (ID) number EPA-HQ-OPP-2006-0955, by one of the following methods:
* Federal eRulemaking Portal: http://www.regulations.gov Follow the on-line instructions for submitting comments.
* Mail: Office of Pesticide Programs (OPP) Regulatory Public Docket (7502P), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-0001.
HEIFER DEVELOPMENT: Prior to Calving - Steve Boyles OSU Extension Beef Team
Heifers that calve first as 2-year-olds produce more calves during a lifetime than do heifers that calve first at three years of age or older. The decision to breed heifers as yearlings involves careful consideration of both the economics of production and such characteristics as the reproduction status, breed type and genetic make-up of the heifers involved. Differences in the age at which heifers are first exposed for breeding depend on three factors: management systems, forage quality and availability, and adaptation of respective breed types to specific environmental conditions.
PRIOR TO CALVING: A 2-year-old heifer should weight about 85% of her mature weight at first calving. They have approximately 280 days to gain the weight from breeding to calving. Bred heifers should gain about 0.7-1 lb/day from breeding to calving. Heifers may reach the target weight coming off good pasture in the fall. Heifer need only maintain their weight through the winter. Feed levels have to be increased if they have not reached their target weight by fall. It is important to provide enough feed without getting the heifers too fat at calving time. They should be at condition score 6-7 at calving.
For those heifers weighing in excess of their target weight at 18 months of age, how should they be handled? The grazing season for these heifers could be extended with protein supplementation being provided. Do not stay out on pasture, however, until body condition starts decreasing.
Inadequate nutrition creates more calving difficulty in heifers than excess nutrition. Some feel that the heifer should be limited in feed before calving so the fetus will not become too large, and consequently reduce calving difficulty. In fact, limiting nutrients to the heifer usually only slightly effects calf birth weight. The heifer will sacrifice body condition and arrest growth before diverting many nutrients from the fetus. Her thin condition affects her breed-back performance. In addition, data from Colorado shows that thin heifers have lower levels of colostrum, and consequently their calves are more susceptible to scours. Excessive nutrition often gets the blame for what is really calving problems via improper bull selection. Excessive protein has not consistently increased calving difficulty. Excessive energy can create calving difficulty. Research studies indicate calf birth weight can be increased 8-10 lbs through nutrition without increasing calving difficulty.
Alfalfa Weevil Present? - R. Hammond and B. Eisley, OSU Extension Entomologists
With warmer temperatures now occurring, alfalfa growers plan on scouting for alfalfa weevil in the coming weeks. The need for scouting is especially true in southern counties where heat unit accumulation has reached the 300 HU last week needed for egg hatch and beginning feeding. Although central and northern Ohio is behind this accumulation of heat units, growers in those areas should begin their scouting over the next 1-2 weeks. Remember that fields that have a south facing slope tend to warm up sooner and need to be checked for weevil earlier.
Alfalfa weevil scouting is accomplished by collecting a series of three 10-stem samples randomly selected from various locations in a field. Place the stem tip down in a bucket. After 10 stems have been collected, the stems should be vigorously shaken in the bucket and the number of larvae in the bucket counted. The shaking will dislodge the late 3rd and 4th instar larvae which cause most of the foliar injury. Close inspection of the stem tips may be needed to detect the early 1st and 2nd instar larvae. The height of the alfalfa should also be recorded at this time. Economic threshold is based on the number of larvae per stem, the size of the larvae and the height of the alfalfa. The detection of one or more large larvae per stem on alfalfa that is 12 inches or less in height indicates a need for rescue treatment. Where alfalfa is between 12 and 16 inches in height, the action threshold should be increased to 2 to 4 larvae per stem depending on the vigor of alfalfa growth.
See the OSU Alfalfa Weevil FactSheet at http://ohioline.osu.edu/ent-fact/0032.html for more on alfalfa weevil scouting and thresholds. For insecticides that are labeled for alfalfa weevil, see http://entomology.osu.edu/ag/545/aiaw.pdf. Remember that it is still too early to scout for potato leafhopper since they do not move into Ohio until May.
Weekly Roberts Agricultural Commodity Market Report - Mike Roberts, Commodity Marketing Agent, Virginia Tech
LIVE CATTLE in Chicago on the Chicago Mercantile Exchange (CME) finished up on Monday. APR'07LC futures closed at $100.90/cwt, up $.450/cwt and $1.900/cwt higher than last ago at this time. The JUNE'07LC also closed up and was the most actively traded on the day. It closed up $0.375/cwt at $96.70/cwt but only $0.30/cwt higher than last week. Fresh highs in feeder cattle and higher cash cattle prices were supportive of live cattle futures. Live cattle were less exciting … Er … stressful … amid light to moderate volume. One floor source was quoted as saying, "It was just a pretty dull day in live cattle." Light supplies of market-ready cattle were noted as not providing futures with enough information to really get the trading engine going well. Wholesale beef prices moved sharply higher last week in reaction to grocery store buying seen as their positioning to be ready for springtime-cookout inventory needs. As a result, there is an expectation in the market that cash cattle will trade $1/cwt-$2/cwt higher at $101/cwt-$102/cwt in the Plains feedlot markets this week. USDA raised the choice cutout on Monday $3.10/cwt from last Friday to $162.68/cwt. This was $9.33/cwt higher than a week ago at this time. According to HedgersEdge.com, the average beef plant margin for Monday was placed at a negative $13.60/head, $4.70/head better than last Friday and a whopping $33.90/head better than one week ago! Cash sellers are still encouraged to be patient with sales this week. It is still a good idea to hedge feeder cattle purchases and an even better idea to forward price feed grain inputs at this time.
FEEDER CATTLE at the CME finished well on Monday. The APR'07FC contract closed up $.775/cwt at $111.90/cwt. The MAY'07 contract closed at $112.750/cwt, up $0.900/cwt. Some feeder cattle contracts started the day sharply lower before turning up later in the day. The August, October, November, and January contracts set fresh highs. Early selling in feeders was seen as a direct reaction to gains in corn futures. Feeder cattle rebounded after corn turned lower late in the day. The latest CME Feeder Cattle Index for April 4 was placed at $108.02/cwt, up $0.96/cwt and the highest since October 19, 2006. Cash sellers should think about selling feeder cattle when they are ready in order to take advantage of these good prices. Now is still a good time to lock in more grain inputs.