FEEDLOT UPDATE: In the latest Kansas State University “Focus on Feedlots” survey for the month of January, steer and heifer performance continued to improve and surpass prior years. Still, high feedstuff costs have raised cost of gain. Two key feedlot measures of animal performance were impressive in recent months: 1) average daily gain; and 2) pounds of feed required for a pound of gain. The average cost of gain for steers and heifers increased as expected driven by the increase in corn prices with costs of gains forecast to exceed $100 per cwt. in coming months.
Kansas feedlots reported record average daily gains during the feeding period for both steers and heifers for the month of January. Steer closeouts reported an average daily gain of 3.76 pounds per day versus 3.59 pounds in 2010, and well above the 2005-2009 average of 3.40 pounds per day. Although, it was lower than the series record of 3.89 pounds per day reported in December. Heifers gained an average 3.46 pounds per day in January compared to 3.18 pounds last year and the 2005-2009 average 3.09 pounds per day average. This was the second highest average daily gain reported for the data series, with the record of 3.56 pounds per day set in November 2010. Since October of last year, feedlots have posted record to near record average daily gains for both steers and heifers.
In addition to increasing average daily gain, the amount of feed required (dry mater basis) to produce one pound of gain has declined. For steers sold in January of this year, 6.03 pounds of feed were required to achieve one pound of gain over the feeding period. That was about 0.3 pounds less than both a year ago and the 2005-2009 average. Feed required per pound of gain has been below a year earlier for 10 consecutive months.
Costs of gains for steer and heifers sold in January were the highest reported since August 2008. For the month, the average cost of gain for steers was $94.00 per cwt., $19.00 per cwt. greater than last year, while heifers cost of gain averaged $100.00 per cwt. compared to $77.50 per cwt. in 2010. Cost of gain will remain high in coming months as Kansas feedlots reported the mid-month price for corn in February at $6.02 per bushel, the highest since the fall of 2008. According to the report, the cost of gain for steers and heifers are projected to average in the $102 to $110 per cwt. range which would be a record.
Source: Livestock Marketing Information Center (www.lmic.info)
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