September 14, 2018 Tennessee Market Highlights Number: 37

FED CATTLE: Fed cattle trade was not well established at press. Asking prices on a live basis were mainly $112 to $114 with bids from $108 to $109. The 5-area weighted average prices thru Thursday were $107.79 live, down $0.10 from last week and $171.52 dressed, up $1.95 from a week ago. A year ago prices were $104.50 live and $166.87 dressed. Does it even matter that packers and feed-lots are slow to trade finished cattle? The October live cattle contract hit the $3 limit heading north to end the week with all of the deferred contracts in close pursuit. This means all the contracts gained between $3 and $4 compared to the close last Friday. This jump to the upside is sure to mean a higher price for cattle feeders which should improve cattle feeding margins while pack-ers will watch margins decline. The reason-ing and rational behind the positive price movement is not clear to this market watcher, but it will take even higher live cattle prices to net a profit on the feeder cattle being placed in feedlots. Sitting on the sidelines may not be such a bad place right now. BEEF CUTOUT: At midday Friday, the Choice cutout was $203.88 down $0.16 from Thursday and down $3.10 from last Friday. The Select cutout was $197.86 up $0.03 from Thursday and down $0.59 from last Friday. The Choice Select spread was $6.61 compared to $9.12 a week ago. Beef cutout prices continue to push lower as demand seasonally softens heading into the fall months. This means there is still a possibility of the Choice cutout price falling below the $200 threshold moving through the next several weeks. Beef demand the past several years has been relatively strong based on the demand index comput-ed by the Livestock Marketing Information Center (LMIC). Demand for beef in 2015 was at its highest level since 1991 based on LMIC calculations. Demand softened slight-ly in 2016 and 2017 based on the same cal-

culations, but remained relatively strong compared to the previous decade. Demand in 2018 appears to be rounding into form similar to the previous two years with con-tinued strong demand that has supported beef and cattle prices through the entire production chain. Several factors are con-tributing to strong beef demand with the most likely being increased income levels, consumers preference for beef, and ex-ports. The industry will continue trying to grow beef demand. OUTLOOK: If someone thinks they know how the cattle market is going to move then all it takes is a couple of days of the market moving against them to persuade them otherwise. In actuality, it may only take a few minutes or seconds of the mar-ket moving against a person’s position to place some doubt in a person’s mind. The truth of the matter is that attempting to market cattle on short term price fluctua-tions is a tough task that will likely result in a person winning half the time and losing half of the time. From a producer mar-keting standpoint, it may be wiser to look at long term trends and cycles to assist in cattle marketing. However, the market does not always follow long term trends and cycles perfectly which can result in dis-appointment on occasion. Additionally, week to week variability in prices can add to successes and disappointments in mar-keting cattle. The point of this discussion is to remind readers of the importance of maintaining flexibility in the marketing plan. Maintaining flexibility may be im-portant moving through the fall marketing time period since no clear price direction has been established at this point. Based on Tennessee weekly auction price averages, steer prices this week were $1 to $5 higher compared to last week while heifer prices were steady to $4 higher. This week’s price movement is working against the seasonal tendency of calf prices as are feeder cattle futures contracts. The calf and feeder cattle

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Livestock Comments by Dr. Andrew P. Griffith Trends for the Week Compared to a Week Ago

Slaughter Cows

Steady to $1 lower

Slaughter Bulls

Steady

Feeder Steers

$1 to $5 higher

Feeder Heifers

Steady to $4 higher

Feeder Cattle Index

Wednesday’s index: 152.60

Fed Cattle

The 5-area live price of $107.79 was down $0.10. The dressed price of $171.52 was down $1.95.

Corn

December closed at $3.51 a bush-el, down 16 cents since last Friday.

Soybeans

November closed at $8.30 a bush-el, down 14 cents since last Friday.

Wheat

December closed at $5.11 a bush-el, unchanged since last Friday.

Cotton

December closed at 81.83 cents per lb, down 0.16 cents since last Friday.

2

market have remained strong through the late summer months and the futures market is suggesting continued strength while seasonal price trends would suggest lower prices. Prices are strong now with most of the price risk being to the downside. This means it could prove beneficial to market cattle now with a delayed delivery if possible. For those marketing cattle across the scale, this may be the time to consider a price risk manage-ment tool such as Livestock Risk Protection insurance or the futures market. This statement is not meant to say prices are going to decline, but that prices are strong and worth pro-tecting. ASK ANDREW, TN THINK TANK: Many readers of this article borrow money to purchase land, livestock, crop inputs, and equipment. This week, a phone call was received that pertained to obtaining a land loan. This particular person was trying to prepare documents to take to a lending agency to support a successful loan application. More specifically, this person was using the Microsoft Excel version of the annual cow-calf budget published by the University of Tennessee Extension. This budg-et tool has several uses. However, in this particular case, the producer was attempting to show a profit from cow-calf pro-duction to support receiving a loan. Not in relation to this par-ticular producer, it is very important to be honest with oneself and thorough when using a budgeting tool. It is fairly common for users of such a tool to fail to account for all costs. Budgeting tools are developed to provide a template and hopefully re-mind the user of costs that may not seem obvious. Please send questions and comments to agriff14@utk.edu or send a letter to Andrew P. Griffith, University of Tennessee, 314B Morgan Hall, 2621 Morgan Circle, Knoxville, TN 37996. FRIDAY’S FUTURES MARKET CLOSING PRICES: Friday’s closing prices were as follows: Live/fed cattle –October $113.80 +3.00; December $118.05 +2.65; February $121.90 +2.00 Feeder cattle –September $157.43 +2.48; October $158.88 +3.48; November $158.43 +3.35; January $154.90 +3.10; September corn closed at $3.37 up $0.01 from Thursday.

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Livestock Comments by Dr. Andrew Griffith

Thursday, September 13, 2018

Month Class III Close Class IV Close

Sep 16.13 14.93

Oct 16.10 15.00

Nov 16.22 15.06

Dec 16.05 15.06

Jan 15.92 15.07

Milk Futures

Cattle Hogs

———— Number of head ————

This week (4 days) 119,000 437,250

Last week (3 days) 118,000 469,000

Year ago (4 days) 117,500 457,250

This week as percentage of

Week ago (%) 101% 93%

Year ago (%) 101% 96%

Average Daily Slaughter USDA Box Beef Cutout Value

Choice 1-3 600-900 lbs

Select 1-3 600-900 lbs

———————— $/cwt —-———————

Thursday 204.04 197.24

Last Week 208.75 197.83

Year ago 190.40 188.69

Change from week ago -4.71 -0.59

Change from year ago +13.64 +8.55

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Crop Comments by Dr. Aaron Smith

Overview Corn and soybeans were down; cotton and wheat were mixed for the week.

The major news this week was USDA’s updated yield estimates. Nationally, corn, soybean, and upland cotton yields were estimated at 181.3 bu/acre, 52.8 bu/acre, and 881 lb/acre. Corn and soybean estimates were revised up

2.9 bu/acre and 1.2 bu acre from last month – if realized both would be all-time records. Upland cotton yield was decreased 14 lb/acre from last month.

The larger than anticipated, corn and soybean yields contributed to December corn and November soybeans setting new contract lows of $3.48/bu and $8.21/bu. With the large crop headed towards market and no foreseeable end to trade disruptions a further leg down in futures prices cannot be ruled out at this time.

In Tennessee, corn yields were left unchanged at 174 bu/acre; soybean yield was increased 2 bu/acre to 51 bu/acre; and cotton yield was increased 32 lb/acre to 1,082 lb/acre. Corn and soybean yields would be all-time state records and cotton would be the second highest on record - 22 lbs under 2016’s all-time high.

A combination of factors have led to low cash soybean and corn prices this harvest season. The three most prevalent are the large carryover stocks from the past marketing year, trade disruptions, and record yields. Unfortunately for prices, the combination of those three factors has led to futures market declines and substantial decreases in harvest basis in many parts of the country (including Tennessee), resulting in steep declines in cash prices. Currently, less than 1/3 of the corn crop and 1/10 of the soybean crop has been harvested in Tennessee. As such, further price declines are possible. Producers should consider storage options on- and off-farm as well as other marketing strategies to try and extend the marketing interval.

Details of the latest USDA WASDE for corn, soybeans, cotton, and wheat are available online at: https://ag.tennessee.edu/arec/Pages/MonthlyCropComments.aspx.

Corn

Across Tennessee, average corn basis (cash price-nearby futures price) weakened or remained unchanged at Memphis, Northwest Barge Points, Upper-middle, and Lower-middle Tennessee and strengthened at Northwest Tennessee. Overall, basis for the week ranged from 40 under to 10 under the December futures contract with an average of 24 under at the end of the week. December 2018 corn futures closed at $3.51, down 16 cents since last Friday. For the week, December 2018 corn futures traded between $3.48 and $3.69. Corn net sales reported by exporters from August 31-September 6, 2018 were below expectations with net sales of 30.5 million bushels for the 2018/19 marketing year. Exports for the same time period were down 18% compared to last week at 39.0 million bushels. For the marketing year ended August 31, 115.2 million bushels of sales were carried over into 2018/19. Total accumulated exports for 2017/18 were 2.263 billion bushels, up 4% from the previous year. Corn export sales and commitments were 25% of the USDA estimated total annual exports for the 2018/19 marketing year (September 1 to August 31) compared to a 5-year average of 24%. Ethanol production for the week ending September 7 was 1.020 million barrels per day, down 67,000 from the previous week. Ethanol stocks were 22.894 million barrels, up 193,000 barrels. Dec/Mar and Dec/Dec future spreads were 12 and 39 cents, respectively.

The Crop Progress report estimated corn condition at 68% good-to-excellent and 12% poor-to-very poor; corn dented at 86% com-pared to 75% last week, 73% last year, and a 5-year average of 75%; corn mature at 35% compared to 22% last week, 20% last year, and a 5-year average of 21%; and corn harvested at 5% compared to 5% last year and a 5-year average of 3%. In Tennessee, corn

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4

Crop Comments by Dr. Aaron Smith

condition was estimated at 71% good-to-excellent and 8% poor-to-very poor; corn dented at 97% compared to 93% last week, 95% last year, and a 5-year average of 95%; corn mature at 73% compared to 47% last week, 76% last year, and a 5-year average of 62%; and corn harvested at 23% compared to 9% last week, 21% last year, and a 5-year average of 20%. In Tennessee, January 2019 corn cash forward contracts averaged $3.54 with a range of $3.20 to $3.86. March 2019 corn futures closed at $3.63, down 16 cents since last Friday. December 2019 corn futures closed at $3.90, down 6 cents since last Friday. Downside price protection could be obtained by purchasing a $4.00 December 2019 Put Option costing 33 cents establishing a $3.67 futures floor.

Soybeans

Average soybean basis weakened or remained unchanged at Memphis, Northwest Barge Points, Lower-middle, and Northwest Tennessee and strengthened at Upper-middle Tennessee. Basis ranged from 76 under to 50 under the November futures contract at elevators and barge points. Average basis at the end of the week was 63 under the November futures contract. November 2018 soybean futures closed at $8.30, down 14 cents since last Friday. For the week, November 2018 soybean futures traded between $8.21 and $8.51. Net sales reported by exporters were within expectations with net sales of 25.5 million bushels for the 2018/19 marketing year. Exports for the same period were up 15% compared to last week at 41.8 million bushels. For the marketing year ended August 31, 89.3 million bushels of sales were carried over into 2018/19. Total accumulated exports for 2017/18 were 2.072 billion bushels, down 3% from the previous year. Soybean export sales and commitments were 30% of the USDA estimated total annual exports for the 2018/19 marketing year (September 1 to August 31), compared to a 5-year average of 39%. Nov/Dec 2018 soybean-to-corn price ratio was 2.36 at the end of the week.

Nov/Jan and Nov/Nov future spreads were 14 and 61 cents, respectively. The Crop Progress report estimated soybean condition at 68% good-to-excellent and 10% poor-to-very poor; and soybeans dropping leaves at 31% compared to 16% last week, 20% last year, and a 5-year average of 19%. In Tennessee, soybean condition was estimated at 69% good-to-excellent and 8% poor-to-very poor; soybeans dropping leaves at 23% compared to 9% last week, 21% last year, and a 5-year average of 20%; and soybeans har-vested at 3%. In Tennessee, Oct/Nov 2018 soybean cash contracts average $7.75 with a range of $7.52 to $8.03. January 2019 soy-bean futures closed at $8.44, down 13 cents since last Friday. November 2019 soybean futures closed at $8.91, down 8 cents since last Friday. Downside price protection could be achieved by purchasing a $9.00 November 2019 Put Option which would cost 59 cents and set an $8.41 futures floor. Nov/Dec 2019 soybean-to-corn price ratio was 2.28 at the end of the week.

Cotton

Delta upland cotton spot price quotes for September 13 were 80.12 cents/lb (41-4-34) and 81.87 cents/lb (31-3-35). Adjusted World Price (AWP) increased 0.02 cents to 73.79 cents. Net sales reported by exporters were up from last week at 81,700 bales for the 2018/19 marketing year and 17,700 for the 2019/20 marketing year. Exports for the same time period were 135,700 bales, down 23% from last week. Upland cotton export sales were 60% of the USDA estimated total annual exports for the 2018/19 mar-keting year (August 1 to July 31), compared to a 5-year average of 40%.

The Crop Progress report estimated cotton condition at 38% good-to-excellent and 34% poor-to-very poor; cotton opening bolls at 39% compared to 29% last week, 33% last year, and a 5-year average of 35%; and cotton harvested at 10% compared to 8% last year and a 5-year average of 5%. In Tennessee, cotton condition was estimated at 80% good-to-excellent and 4% poor-to-very poor; and cotton bolls opening at 68% compared to 52% last week, 29% last year, and a 5-year average of 31%. December 2018 cotton futures closed at 81.83, down 0.16 cents since last Friday. For the week, December 2018 cotton futures traded between 81.35 and 83.93 cents. Dec/Mar and Dec/Dec cotton futures spreads were 0.31 cents and -4.22 cents, respectively. March 2019 cotton futures closed at 82.14, down 0.26 cents since last Friday. December 2019 cotton futures closed at 77.61, down 0.12 cents

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Crop Comments by Dr. Aaron Smith

since last Friday. Downside price protection could be obtained by purchasing a 78 cent December 2019 Put Option costing 5.42 cents establishing a 72.58 cent futures floor.

Wheat

In Tennessee, September 2018 cash wheat ranged from $5.18 to $5.65 for the week. Wheat net sales reported by exporters were within expectations with net sales of 14.2 million bushels for the 2018/19 marketing year. Exports for the week were up 50% com-pared to last week at 15.8 million bushels. Wheat export sales were 35% of the USDA estimated total annual exports for the 2018/19 marketing year (June 1 to May 31), compared to a 5-year average of 53%. The Crop Progress report estimated winter wheat planted at 5% compared to 5% last year and a 5-year average of 5%; and spring wheat harvested at 93% compared to 87% last week, 94% last year, and a 5-year average of 85%.

December 2018 wheat futures closed at $5.11, unchanged since last Friday. December 2018 wheat futures traded between $4.95 and $5.18 this week. December wheat-to-corn price ratio was 1.46. Dec/Mar and Dec/Jul future spreads were 19 cents and 39 cents, respectively. March 2019 wheat futures closed at $5.3, down 1 cent since last Friday. In Tennessee, June/July 2019 wheat cash contracts ranged from $5.38 to $5.66 for the week. July 2019 wheat futures closed at $5.50, up 88 cents since last Friday. Downside price protection could be obtained by purchasing a $5.60 July 2019 Put Option costing 46 cents establishing a $5.14 fu-tures floor.

Additional Information: Links for data presented: U.S. Export Sales - https://apps.fas.usda.gov/export-sales/esrd1.html USDA FAS: Weekly Export Performance Indicator – https://apps.fas.usda.gov/esrquery/esrpi.aspx EIA: Weekly ethanol Plant Production - https://www.eia.gov/dnav/pet/pet_pnp_wprode_s1_w.htm EIA: Weekly Supply Estimates - https://www.eia.gov/dnav/pet/pet_sum_sndw_a_EPOOXE_sae_mbbl_w.htm Upland Cotton Reports - https://www.fsa.usda.gov/FSA/epasReports?area=home&subject=ecpa&topic=fta-uc Tennessee Crop Progress - https://www.nass.usda.gov/Statistics_by_State/Tennessee/Publications/Crop_Progress_&_Condition/ U.S. Crop Progress - http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1048 USDA AMS: Market News - https://www.ams.usda.gov/market-news/search-market-news

If you would like further information or clarification on topics discussed in the crop comments section or would like to be added to our free email list please contact me at aaron.smith@utk.edu.

6

Friday, September 7, 2018 — Thursday, September 13, 2018

Commodity Contract Month Friday Monday Tuesday Wednesday Thursday

Soybeans Sep 8.32 8.33 8.20 8.29 8.22

($/bushel) Nov 8.44 8.45 8.31 8.40 8.33

Jan 8.57 8.59 8.45 8.53 8.47

Mar 8.70 8.71 8.58 8.66 8.59

May 8.82 8.83 8.70 8.78 8.72

Jul 8.91 8.92 8.79 8.87 8.82

Corn Sep 3.54 3.55 3.55 3.41 3.36

($/bushel) Dec 3.67 3.67 3.66 3.52 3.50

Mar 3.79 3.79 3.78 3.65 3.62

May 3.87 3.86 3.86 3.73 3.71

Jul 3.92 3.92 3.92 3.79 3.77

Sep 3.92 3.93 3.92 3.83 3.82

Wheat Sep 4.86 5.04 4.93 4.81 4.71

($/bushel) Dec 5.11 5.28 5.18 5.06 4.97

Mar 5.31 5.46 5.37 5.27 5.17

May 5.44 5.60 5.51 5.41 5.33

Jul 5.42 5.60 5.52 5.45 5.38

Soybean Meal Sep 314 315 314 315 311

($/ton) Oct 314 316 314 315 312

Dec 317 318 316 318 314

Jan 316 317 315 317 314

Mar 315 315 312 314 312

May 314 314 310 312 310

Cotton Oct 82.13 83.93 83.03 82.76 81.62

(¢/lb) Dec 81.99 83.85 82.89 82.64 81.51

Mar 82.40 84.17 83.31 83.03 81.97

May 82.72 84.43 83.68 83.36 82.44

Jul 82.96 84.63 83.95 83.59 82.85

Live Cattle Oct 109.95 110.15 109.30 111.47 110.80

($/cwt) Dec 114.42 114.42 113.92 115.52 115.40

Feb 118.25 118.52 118.40 119.50 119.90

Apr 119.42 119.90 119.90 120.82 121.30

Jun 112.95 113.27 112.95 113.92 114.22

Feeder Cattle Sep 152.97 152.52 152.12 154.62 154.95

($/cwt) Oct 152.95 152.67 152.45 155.02 155.40

Nov 152.72 152.87 152.42 154.82 155.07

Jan 148.72 148.95 148.82 151.05 151.80

Mar 147.95 148.00 147.92 149.72 150.40

Apr 148.70 148.57 148.65 150.17 150.85

Market Hogs Oct 55.65 55.95 54.47 55.80 55.67

($/cwt) Dec 56.80 55.70 54.10 55.62 55.92

Feb 64.72 63.92 63.32 64.70 65.35

Apr 69.80 68.95 68.80 69.87 70.00

May 75.25 74.80 74.40 75.47 75.35

Futures Settlement Prices: Crops & Livestock

7

Cattle Receipts: This week: 9,286 (10) Week ago: 4,963 (9) Year ago: 8,109 (10)

This Week Last Week Year Ago

Low High Weighted Average Weighted Average Weighted Average

—————————————————————— $/cwt ——————————————————————

Steers: Medium/Large Frame #1-2

300-400 lbs 150.00 187.00 167.42 164.33 170.18

400-500 lbs 145.00 170.00 157.55 157.58 156.95

500-600 lbs 136.00 167.00 150.94 149.50 149.52

600-700 lbs 125.00 154.50 142.64 139.59 141.76

700-800 lbs 125.00 144.00 135.49 132.60 135.63

Steers: Small Frame #1-2

300-400 lbs 130.00 145.00 135.38 147.49 ———

400-500 lbs 140.00 148.00 142.74 ——— 133.55

500-600 lbs 131.00 135.00 133.33 129.64 124.93

600-700 lbs ——— ——— ——— ——— 117.57

Steers: Medium/Large Frame #2-3

300-400 lbs 135.00 165.00 148.68 149.04 144.85

400-500 lbs 130.00 153.00 145.09 142.76 139.45

500-600 lbs 124.00 154.00 138.08 131.23 136.09

600-700 lbs 110.00 142.00 129.32 130.56 124.79

700-800 lbs 120.00 122.00 121.25 123.18 118.70

Holstein Steers

300-400 lbs ——— ——— ——— ——— ———

500-600 lbs 66.00 76.00 70.92 ——— ———

700-800 lbs ——— ——— ——— ——— ———

Slaughter Cows & Bulls

Breakers 75-80% 48.00 51.75 52.27 60.59 60.00

Boners 80-85% 53.47 54.10 63.14 46.00 64.00

Lean 85-90% 40.00 55.50 46.70 45.79 56.71

Bulls YG 1 71.00 87.00 79.52 79.60 87.74

Heifers: Medium/Large Frame #1-2

300-400 lbs 120.00 170.00 146.31 148.52 149.27

400-500 lbs 119.00 151.00 137.08 138.80 140.03

500-600 lbs 117.00 144.00 132.28 131.65 132.74

600-700 lbs 114.00 137.00 127.71 123.56 126.29

Heifers: Small Frame #1-2

300-400 lbs 122.50 137.50 129.85 131.03 126.88

400-500 lbs 110.00 139.00 122.19 127.97 122.58

500-600 lbs 110.00 134.00 123.77 109.78 116.34

600-700 lbs 109.00 110.00 109.51 ——— ———

Heifers: Medium/Large Frame #2-3

300-400 lbs 120.00 148.00 133.76 129.65 128.09

400-500 lbs 110.00 137.00 128.13 125.21 127.94

500-600 lbs 115.00 135.00 124.69 123.27 122.92

600-700 lbs 112.50 124.00 118.76 116.34 117.28

Prices on Tennessee Reported Livestock Auctions for the week ending September 14, 2018

8

Friday, September 6, 2018 — Thursday, September 13, 2018

Friday Monday Tuesday Wednesday Thursday

Low High Low High Low High Low High Low High

———————–——————————————— $/bushel ———————————————————–———

No. 2 Yellow Soybeans

Memphis 7.89-7.94 7.87-7.95 7.69-7.71 7.78-7.80 7.73-7.73

N.W. B.P. 7.80-7.89 7.81-7.87 7.65-7.69 7.74-7.78 7.67-7.69

N.W. TN ——— ——— ——— ——— ———

Upper Md. 7.70-7.74 7.71-7.95 7.56-7.81 7.65-7.90 7.60-7.83

Lower Md. ——— ——— ——— ——— ———

Yellow Corn

Memphis 3.52-3.57 3.52-3.57 3.51-3.54 3.36-3.40 3.34-3.38

N.W. B.P. 3.32-3.47 3.33-3.47 3.42-3.45 3.25-3.27 3.25-3.27

N.W. TN 3.27-3.37 3.27-3.37 3.27-3.46 3.22-3.33 3.20-3.31

Upper Md. 3.37-3.37 3.37-3.37 3.36-3.36 3.22-3.23 3.20-3.20

Lower Md. ——— ——— ——— ——— ———

Wheat

Memphis ——— ——— ——— ——— ———

Prices Paid to Farmers by Elevators

100

120

140

160

180

200

220

Tennessee 500-600 lbs. M-1 Steer Prices2017, 2018 and 5-year average

2012/2016 Avg 2017 2018

85

105

125

145

165

185

Tennessee 700-800 lbs. M-1 Steers Prices2017, 2018 and 5-year average

2012/2016 Avg 2017 2018

8595

105115125135145155

5-Area Finished Cattle Prices2017, 2018 and 5-year average

2012/2016 Av g 2017 2018

35455565758595

105

Tennessee Slaughter Cow PricesBreakers 75-80%

2017, 2018 and 5-year average

1.00 2017 2018

9

Alexandria Stockyard Inc. - Alexandria, TN Livestock Weighted Average Report for 9/6/2018 SPECIAL GRADED Receipts: 176 For complete report: https://www.ams.usda.gov/mnreports/nv_ls191.txt East Tennessee Livestock Center - September 12, 2018 Video lots of a total of 178 double-vaccinated and dewormed twice Holstein Steers sold, 95% #3?s and 5% #4?s- all medium flesh- 1 load weighing 750-860 lbs. $89.25 per cwt., and 1 load weighing 825-925 lbs. $88.25 per cwt. East Tennessee Livestock Center, Sweetwater, TN Southeast Pride SelectVac Sale Report for Friday Sep 7, 2018 Cattle Receipts: 464 For complete report: https://www.ams.usda.gov/mnreports/nv_ls183.txt Hardin County Stockyard - September 12, 2018 1 load of 87 Steers, est. wt. 589 lbs; Med & Lg 1-2, 4-5 flesh, Black/BWF Red/RWF CHX, $162.00 1 load of 57 steers, est. wt. 835 lb, Med & Lg 1, 5 flesh, Black/BWF Red CHX, $146.00 Lower Middle Tennessee Cattlemens Video Board Sale Feeder Cattle Weighted Average Report for 09/07/2018 Receipts: 1944 For complete report: https://www.ams.usda.gov/mnreports/nv_ls184.txt Mid-South Livestock Center - September 10, 2018 1 Load 62 head of Heifers M&L 1-2 weighing 778 lbs. 133.60 1 Load 62 head of Heifers M&L 1-2 weighing 800 lbs. 132.50 1 Load 62 head of Steers M&L 1-2 weighing 870 lbs. 139.35 1 Load 73 head of Steers M&L 1-2 weighing 750 lbs. 147.50 Warren Co. Livestock Graded Sale, McMinnville, TN Weighted Average Report for Thursday Sep 13, 2018 Cattle Receipts: 1695 For complete report: https://www.ams.usda.gov/mnreports/nv_ls189.txt

9/11/18 TN Livestock Producers Fayetteville Receipts: 554 (189 graded & grouped) Steers: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 151.00-158.00 300-400 lbs 130.00 400-500 lbs 138.00-140.00 400-500 lbs 131.00-132.50 500-600 lbs 160.00-166.00 500-600 lbs 125.50-129.00 600-700 lbs 138.50-144.75 600-700 lbs 120.00-126.50 700-800 lbs 135.00-139.00 700-800 lbs 119.50 800-900 lbs 102.50 Bulls: Med & Lg 1-2 400-500 lbs 146.50-151.50 500-600 lbs 130.00-147.00 600-700 lbs 118.50-129.00 700-800 lbs 110.50-125.50 800-900 lbs 96.50

Columbia Graded Sheep and Goat Sale Weighted Average Report for 09/10/2018 Receipts: 437 (191 goats; 246 sheep) For complete report: https://www.ams.usda.gov/mnreports/nv_ls320.txt

Graded Sales, Video Board Sales, Video Sales & Loads Self-Reported and Self-Graded Markets

Graded Sheep and Goat Sale

10

Cows as Combines Kris Ringwall, Beef Specialist September 13, 2018

Cows are harvesters, sort of a biological combine, and dining on crop aftermath can be a real component to profitable com-mercial beef production.

Yes, bison, yaks and many other four-legged precursors were company competitors, but as far as production units, the cow combines win out. Cow combine units come in various colors, depending on the dealer one chooses, but all have pretty good track records.

Mixing and matching the header unit with the combine unit is possible and certainly a producer’s choice, realizing that many producers prefer a solid-colored unit. But keep in mind, the performance level of the mixed unit seems to have more pro-duction capacity than the straight units.

The use of cows as biological combines is not new, and the Dickinson Research Extension Center has been studying the impact of extended grazing in extensive beef cattle operations for many years. All these studies have a common outcome; that is, cow-calf producers tend to underutilize their cows when harvesting forage. Some harvesting opportunities simply never are utilized.

More recently, beginning in 2016, center scientists Songul Sen-turklu and Doug Landblom tested several harvesting units un-der various scenarios. The results were amazing. The units that only harvested grass were more expensive because their over-wintering costs were greater, $209 per unit. Interestingly, find-ing some more cropland and cover crop to harvest into the fall reduced wintering costs by almost a third (32.5 percent), to $141.

So, carrying that thought farther, letting those harvesting units go around the agronomic fields a second or third time and complete a late harvest of standing summer grass growth cut the overwinter charges by more than two-thirds (65.1 percent), to $73. No question about it: The cow is the vehicle to harvest fall plant growth.

This win-win scenario lowers costs and improves production maintenance of the cow. That leads to another thought: Cows need to be in good condition at calving next spring and even better condition at breeding next summer.

The middle three months of gestation, or pregnancy, in other words, are the time to improve cow condition. Can this be ac-complished while the cows are harvesting well into later fall to early winter?

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The answer is “yes,” but keep in mind that herd management and calving dates also need to focus on grazing. In other words, calve on growing grass in the spring to maximize a cow’s graz-ing potential.

But fall crop aftermath grazing is beneficial regardless of calving time. Right now, cow milk production is decreasing for spring-calving cows, the weather is favorable and, generally, crop aftermath is bountiful. When moisture tends to run short, grain production acreage often is shifted into potential cow feed.

While crop production has many variables, standing plants are meant to be tasted. I always ponder, when I drive by fields that are not fenced nor have access to water, how much a cow would enjoy that field. A moderate-milking, 1,300-pound cow would like to eat her fill of good, green grass prior to weaning, actually eating all that she can to produce milk.

After weaning, that same cow keeps eating if feed is available. When a cow eats above her requirements, she gains weight. In this case, replacing the weight she lost raising her calf, along with adding more body condition (commonly called fat) in preparation for winter, is the hoped-for scenario. Now that is the scenario cow-calf producers like.

Because the third trimester of gestation has not been reached, milk production ceases at weaning and good weather provides the opportunity to utilize cheaper feed resources. Essentially, the cow will eat in excess of her requirements in the crop after-math buffet.

In addition, a good management option is to sort the thinner cows and send them to the best fall pastures. One scenario is to consider weaning the calves of those cows early, reducing the milking stress on their mothers. The fall pastures will put the needed feed in front of the thinner cows and the cows will improve their body condition score.

In the meantime, the moderately to heavier-conditioned cows can be grazing areas that are less lush. However, most produc-ers will let all their cows enjoy fall aftermath grazing, keeping life simple. All the cows should respond with increased condi-tioning and be better prepared for winter and next year’s calv-ing and breeding.

Remember that when the third trimester of pregnancy starts, rebalance the ration and involve your local nutritionist to de-velop a proper herd nutritional program. Also remember to keep an eye on the cattle, identify potential fall plant toxicity and visit your local Extension agent, particularly if you are im-plementing new grazing strategies. Input is always good.

Department of Agricultural and Resource Economics 314 Morgan Hall • 2621 Morgan Circle

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