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OSU Extension - Fairfield County

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and the

OSU Extension BEEF Team

BEEF Cattle questions may be directed to the OSU Extension BEEF Team through Stephen Boyles or Stan Smith, Editor

You may subscribe to this weekly BEEF Cattle letter by sending a blank e-mail to beef-cattle-on@ag.osu.edu

Previous issues of the BEEF Cattle letter

Issue # 535

May 2, 2007

Forage Focus: Prevent Grass Tetany - Mark Landefeld, Extension Educator, Monroe County

As the weather continues to warm and pastures grow, farm managers should be aware of the term hypomagnesemia or "grass tetany". Turning cows or sheep out to new lush pastures can cause the lowering of blood levels of magnesium and an imbalance of electrolytes. This dangerous and unwanted condition is increased in pastures if nitrogen is applied in spring, if soils contain high levels of potassium, or low soil pH conditions exist. There is a relationship between soil phosphorus content and magnesium uptake in forages too. If phosphorus is low, even if soil magnesium is adequate, the plant may not take up magnesium in adequate amounts to meet the cow's needs.

Grass tetany is more common on grass pasture than legume pastures. Legumes tend to have higher magnesium levels in their leaves. Grass tetany is associated with cool weather in spring and fall because the metabolism of the plant is slower and its mineral uptake from the soil is lower, leading to lower magnesium in the forage that the cow is eating.

Early symptoms of grass tetany are muscular weakness, followed by incoordination that progresses until the animal can no longer get up. Animals do not store magnesium in their bones as they do other minerals. Magnesium is stored in soft tissue and must be ingested on a daily basis. Cattle most likely affected by grass tetany are the older cows and high producing animals after they have calved. Grass tetany can generally be avoided by feeding minerals with high magnesium content or supplemental magnesium. Commercial mineral mixes that are effective in preventing grass tetany are available, commonly called high-mag mixes; these minerals contain 12 to 14 percent magnesium.

Magnesium oxide is an inexpensive source of magnesium if you want to formulate your own mix. However, mag-ox is not well liked by animals so it needs to be incorporated with something readily accepted such as dried molasses, minerals, concentrated feeds or salt supplements. Magnesium oxide is about 60 percent magnesium, so the cow should consume approximately 1-2 ounces of mag-ox per day to maintain acceptable levels of magnesium in their diet during spring and fall. Intake of supplemental magnesium should be monitored regularly to be sure lactating cows are consuming proper amounts during the high risk periods.

HEIFER DEVELOPMENT: The Economic Importance of Reproduction - Steve Boyles OSU Extension Beef Team

The University of Minnesota maintained records and summarized the net profit or loss for heifers sold during a developmental period during a three-year period. Heifers culled on the basis of pelvic area, average daily gain, reproductive tract scores, disposition, or structural soundness at the time of the prebreeding exams and finished in a feedlot had a 3-year average net profit of $9, whereas heifers diagnosed as nonpregnant shortly after the breeding season were sold for a net loss of $86. The loss for pregnant heifers that were then diagnosed nonpregnant after wintering on native pasture and sold at a sale barn was $133. These figures indicate the importance of identifying heifers that will not breed during the breeding season and culling those heifers before they become an economic liability. Heifers that were diagnosed pregnant during the breeding season were allocated to three groups: first-service AI, second-service AI, or natural mating. Average profits were $163 for first-service AI heifers, $139 for second-service heifers, and $83 for heifers naturally mated. These figures take into account all synchronization costs. Therefore, the advantage of AI over natural mating is certainly evident from these analyses, but without sound data these results could not have been noticed. In fact, many people would (and still do) shy away from AI because of the initial costs associated with synchronization, management, and an AI technician. Nonetheless, these results would encourage a producer to seriously consider AI, realizing that the profit potential is far greater than just using natural mating.

Net Profit or Loss Associated with the Sale of Heifers at Various Stages of Reproduction

Source: G. C. Lamb. 1999. Purchasing, producing and managing replacements beef heifers to optimize profits. 1999 Beef Cow/Days. Univ. MN.

FERTILITY: Heritability estimates for fertility (pregnancy rate) are relatively low (.00-.10). However reproductive rate is so economically important it cannot be ignored. Culling heifers that fail to conceive within a set breeding season should enhance cow herd fertility.

CALVING EASE: The birth weight of the calf relative to the dam's pelvic area can be a primary determinant of calving difficulty. As a rule of thumb, bulls having birth weight EPDs within the 15th percentile of their breed can usually be considered calving ease sires.

MILKING ABILITY/FLESHING ABILITY: Within a breed, the most effective way to alter milk production is to use milk EPDs for sire selection. For the commercial producer the easiest way to increase milk may be to crossbreed with a sire from a heavy milking breed. Fleshing ability can be related to milking ability. An optimum body condition score would be 5-6 on a 1 to 9 scale.

TEMPERAMENT: The heritability of temperament is .15-.40. Cull heifers having poor dispositions because they create problems in the rest of the herd.

MUSCLE THICKNESS: For most producers, selecting heifers that avoid extremes will be optimum.

STRUCTURAL SOUNDNESS: Overall structural soundness effect longevity. Some areas to evaluate are the feet, legs, eyes, jaw, and mammary system.

Suggested guidelines for beef heifer selection

Adapted from Harlan Ritchie and David Hawkins, Michigan State University.

The next Ohio Cattlemen's Association Seedstock Improvement Sale will be held on May 4, 7:00 p.m. at Muskingum Livestock in Zanesville, Ohio. Fifty-three lots of top quality bulls, all with Expected Progeny Differences (EPDs), will be available for purchase. A catalog for the sale and more information can be found online at www.ohiocattle.org or by calling Bill Doig, Beef Program Specialist at 614-873-6736.

Beef Sector must Pass-on Higher Feed Costs - Chris Hurt, Extension Economist, Purdue University

Beef producers seem to understand that they will have to reduce the number of females in the herd in order to reduce beef production by 2009 and thereby pass higher feed costs to beef consumers. That process appears to be started, but will take some time.

For now, there are more cattle in feedlots than had been expected. On April 1, the USDA estimated there were 11.6 million head of cattle in feedlots with 1,000 head or greater capacity. This is the second highest April total on record. Placements into feedlots during March were up by seven percent. The large placements appear to be related to the low number of smaller calves put into feedlots last fall and winter. Those calves have now grown and are entering feedlots at heavier weights. As an example, from November 2006 through February 2007 placements of calves weighing less than 600 pounds were down 21 percent as corn prices were booming. The data for March show that placements of calves weighing over 700 pounds were up 11 percent. In addition, lower corn prices may have helped stimulate March placements. May corn futures, for example, dropped $.61 per bushel in March, although $.20 came on the last day of the month. Of equal importance was the strength of live cattle futures. August futures were as low as $88 in early February, but rallied to highs above $95 in March.

There are strong indications that the nation's breeding herd is being reduced. One indication is the high rate of cow slaughter. In the last quarter of 2006 and the first quarter of 2007, cow slaughter was 14 percent higher than in the same six month period a year earlier. In addition, the current number of heifers in feedlots headed for slaughter remains nearly four percent higher. High cow and heifer slaughter are strong indications that the mid-year Cattle inventory report to be released on July 20 will show a smaller breeding herd.

Where have prices been and where are they headed? For the first quarter of 2007, Nebraska finished steers averaged $90.70 per hundred, which was $1.50 higher than the price in the same quarter in 2006. This was an impressive showing given that beef production was up over two percent for the quarter. The number of head coming to market was up four percent, but average weights were nearly two percent lower because of high feed prices.

Calf and feeder cattle prices bore the brunt of high feed prices in the first quarter. Steer calf prices, as measured by Oklahoma City 500-550 pound steers, were $10.30 per hundredweight lower, a drop of eight percent from year-previous levels. Feeder steer prices were down $6.50, or six percent. The picture was even more dismal for the prices of heifer calves, which were down $16.85 per hundred, or 13 percent. The negative impact of higher feed prices on the cow-calf sector was an estimated $1.2 billion in the six months from October 2006 through March 2007. This puts the industry on-track to have in excess of a $2 billion annual negative impact from higher feed prices.

After reaching highs at $100 per hundred in early April, finished cattle prices are expected to move into the low-to-mid $90s for the spring quarter. Summer prices are expected to be a few dollars lower and average in the very high $80's to low-$90s. Fall prices are expected to average near the mid-$90s.

Feeder cattle and calf prices may face the greater uncertainty given the potential volatility of the corn market. Steer calf prices are expected to trade in the $115 to $125 range this summer, and then $110 to $120 this fall. If the large corn acreage does get planted this year, and with normal or better weather, those calf prices could easily be $5 to $10 higher by the fall.

Maybe more importantly for the cattle industry is the prospect for a smaller cow herd being reported in the July 20 Cattle inventory update. The way for the brood cow sector to recover from high feed prices is to reduce the size of the cow herd thereby reducing the level of beef production by 2009. In this manner, higher feed costs will eventually be passed to beef consumers.

Weekly Roberts Agricultural Commodity Market Report - Mike Roberts, Commodity Marketing Agent, Virginia Tech

LIVE CATTLE on the Chicago Mercantile Exchange (CME) finished well on Monday on further weakness in corn. The APR'07LC contract closed at noon at $97.275/cwt, up $.075/cwt but $0.080/cwt lower than last week at this time. The JUNE'07LC closed at $94.125/cwt up $0.850/cwt on the day and $0.975/cwt higher than last Monday. The AUG'07LC contract closed at $92.600/cwt, up $0.575/cwt. Both these weeks posted highs not seen in over two weeks. Fund buying and short covering provided much of the support amid strong technical signals and expectations for higher cash cattle prices this coming week. Traders were also mildly exuberant of a resumption of exports to South Korea last week. South Korea, at one the time the third largest US beef importer allowed its first shipment of 6.4 tonnes of US beef into the country since December 2003. Good grilling weather provided other support amid thoughts of retail beef clearing the market. USDA, however, put the choice beef cutout at $157.63/cwt, off $0.13/cwt. Packer supplies are running somewhat thin at the moment and are expected to bid up cattle in the coming week, even though margins for them are still in the red. According to HedgersEdge.com, the average beef plant margin for Monday was a negative $7.05/head, up from a negative $11.95/head last Friday but down from a positive $2.60/head a week ago. Cash sellers are strongly encouraged to push sales this week on lower corn futures. It might be wise to price a little corn this week, especially if corn seedings continue to be slow.

FEEDER CATTLE at the CME finished up on Monday. The MAY'07 contract closed at $109.550/cwt, up $1.000/cwt and up $0.575/cwt from last Monday. The AUG'07 contract was the most active closing at $112.850, up $1.375/cwt. Lower corn futures and higher fat cattle prices were supportive. It is noteworthy to see that the September through November 2007 contracts all posted fresh highs amid good strength in the cash feeder markets. The CME Feeder Cattle Index for April 26 was up $0.07/cwt at $106.850 on Monday. Cash sellers should keep feeder cattle sales current. It might be a good idea to price some corn now as it has now been two weeks in a row that corn plantings have not been what traders thought they should be. Sooner or later this market is going to wise up and corn will begin to go up.

Visit the OSU Beef Team calendar of meetings and upcoming events

BEEF Cattle is a weekly publication of Ohio State University Extension in Fairfield County and the OSU Beef Team. Contributors include members of the Beef Team and other beef cattle specialists and economists from across the U.S.

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