May 18, 2018 Tennessee Market Highlights Number: 20

FED CATTLE: Fed cattle traded $6 lower than last week on a live basis. Prices on a live basis ranged from $110 to $117 while prices on a dressed basis were mainly $182 to $186.

The 5-area weighted average prices thru Thursday were $114.88 live, down $6.33 from last week and $184.28 dressed, down $7.47 from a week ago. A year ago prices were $134.27 live and $212.74 dressed.

Finished cattle prices have declined $10 per hundredweight in a two week period which has resulted in the basis narrowing $8. In other words, cattle feeders are not happy with how basis is narrowing, because all of the narrowing is coming from losses in the cash market and very little change in the futures market. Basis may not be cattle feeders’ biggest worry as this week’s cash cattle trade is the lowest price they have accepted since the middle of October. Looking back one year, finished cattle prices declined $30 from May through late August and early September. It is doubtful cattle feeders are concerned with a similar price decline at this time, but it is well within reason for prices to reach year ago levels in the $104 to $106 range.

BEEF CUTOUT: At midday Friday, the Choice cutout was $232.62 down $0.06 from Thursday and up $1.55 from last Fri-day. The Select cutout was $208.66 up $0.42 from Thursday and down $0.34 from last Friday. The Choice Select spread was $23.96 compared to $22.07 a week ago.

The Choice cutout has gained nearly $21 in a four week period placing packer margins securely in the black for the foreseeable future. Wholesale beef prices are at their highest level since June of last year when Choice beef eclipsed the $250 mark. Though the march of wholesale beef to higher prices has slowed the past couple of weeks, it is reasonable to expect prices to continue escalating the next couple of weeks. Even if prices do not advance much

more, they will likely stay elevated through May and much of June. The seasonal pull on Choice middle meats continues to be the driver of the beef market as Memorial Day grilling is only ten days away. Consum-ers are sure to make a trip to the meat counter this week searching for beef items. This pull on middle meats by self-proclaimed backyard grilling maestros will result in a need to restock the meat coun-ter the following week. This will then be followed by Father’s Day demand and put the beef market in the middle of the sum-mer grilling holidays.

OUTLOOK: After commenting last week that feeder cattle futures were like a bob-ber on a fishing line and that prices had not moved in the same direction more than two consecutive days over the past month, the trend was immediately halted with four consecutive days of lower closing prices. The four consecutive days of lower trading was then stopped by modest gains on Thursday. Friday was again a day of mixed trade with little positive sentiment. Based on Tennessee weekly auction market re-ports, steers weighing less than 650 pounds were $2 to $7 lower while steers weighing 650 pounds and heavier were unevenly steady compared to last week. Similarly, heifers were $1 to $4 lower compared to a week ago. It is very apparent that light-weight calf prices are beginning to wane as summer inches closer. These lightweight calf prices will continue to grind lower as summer heat takes the place of spring rains and as demand softens. Alternatively, heavy feeders generally begin strengthen-ing moving through the summer months as calf fed cattle come off feed and supply of long yearling cattle dwindle. However, there is no guarantee in the yearling market at this time as live cattle and feeder cattle futures struggle to gain traction. A price series of interest for producers of yearling cattle is the CME Feeder Cattle Index. This

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

Slaughter Cows

Steady to $2 lower

Slaughter Bulls

$1 to $2 lower

Feeder Steers

under 650 lbs, $2 to $7 lower; 650 lbs and heavier, unevenly steady

Feeder Heifers

$1 to $4 lower

Feeder Cattle Index

Wednesday’s index: $134.83

Fed Cattle

The 5-area live price of $114.88 is down $6.33. The dressed price is down $7.47 at $184.28.

Corn

July closed at $4.02 a bushel, up

6 cents since last Friday.

Soybeans

July closed at $9.98 a bushel,

down 5 cents since last Friday.

Wheat

July closed at $5.18 a bushel, up

20 cents since last Friday.

Cotton

July closed at 86.55 cents per lb,

up 1.93 cents since last Friday.

2

daily price index is a seven day weighted rolling average price of 700 to 900 pound steers sold in a 12 state region. What may be of interest is that the index was trading as high as $155 per hundredweight to start the year, but was just below $135 as of May 17th. May feeder cattle futures do not track precisely with the feeder cattle index, but the daily closing price range on the May contract has been $131 to $153 since the beginning of 2018 with the current price in the $132 to $133 range. Making note that futures are near the bottom of the trading range, the expectation is for futures and thus cash prices to move higher. However, it may be an arduous path moving through the sum-mer for yearling cattle.

ASK ANDREW, TN THINK TANK: The question up for discussion this week is in relation to budgeting for the cattle operation. More specifically, the question is about interest expense and depreciation. Personnel at the University of Tennessee develop cattle budgets each year based on price expectations. Those budgets can be found online (https://ag.tennessee.edu/arec/Pages/budgets.aspx). Readers may or may not understand in-terest and depreciation expense. Regardless if one understands them, many producers do not account for the two costs. An interest expense is incurred on all expenditures and is usually calculated at a rate of return from the next best alternative investment. In other words, a person could invest that money in something else that has a positive return. Many producers are familiar with depreciation as it relates to taxes. One needs to account for depreciation expense because equipment, build-ings, fences, and purchased breeding stock will have to be re-placed.

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 –June $102.40 -0.65; Au-gust $98.23 -0.88; October $101.70 -0.60; Feeder cattle –May $132.23 -0.88; August $137.63 -1.10; September $137.80 -1.28; October $138.33 -1.43; July corn closed at $4.03 up $0.07 from Thursday.

(Continued from page 1)

Livestock Comments by Dr. Andrew Griffith

.

Thursday, May 17, 2018

Month Class III Close Class IV Close

May 15.23 14.48

June 15.77 15.29

July 16.17 15.65

Aug 16.54 15.82

Sept 16.79 15.96

Milk Futures

Cattle Hogs

———— Number of head ————

This week (4 days) 118,500 458,250

Last week (4 days) 118,750 458,750

Year ago (4 days) 113,750 440,000

This week as percentage of

Week ago (%) 100% 100%

Year ago (%) 104% 104%

Average Daily Slaughter USDA Box Beef Cutout Value

Choice 1-3 600-900 lbs

Select 1-3 600-900 lbs

———————— $/cwt —-———————

Thursday 232.68 208.24

Last Week 231.07 209.14

Year ago 248.17 221.93

Change from week ago +1.61 -0.90

Change from year ago -15.49 -13.69

3

Crop Comments by Dr. Aaron Smith

Overview Corn, cotton, and wheat were up; soybeans were down for the week. Trade negotiations and weather continued to drive market direction this week. However, bubbling under the surface of commodity markets is the strengthening USD, which could have an impact on US agricultural exports for the remainder of 2018 and beyond. The USD Index has increased from 89.23

on April 17 to 93.38 on May 17, a 4.6% increase in value in one month. A strong USD makes agricultural exports less competitive on the global market. The USD index is a weighted measure of several currencies, so it provides a general direction of the strength of the USD relative to a global basket of currencies. Each commodity has currency exchange rates that are more important. For exam-ple, the Brazilian Real-to-USD exchange rate is important to soybean exports. As of May 17, 2018, one Brazilian Real would pur-chase 0.26997 USD, down 8.3% in the past month (On April 17, one Brazilian Real would purchase 0.29449 USD). While many fac-tors impact the global demand for soybeans it will be important to watch the strength of the USD relative to the Brazilian Real (and to a lesser extent the Argentina Peso) throughout 2018 and into 2019. Since October 1, 2017, December 2018 cotton futures have increased from 67.44 to 82.43, a 14.99 cent increase (or a 22% appreci-ation in value)! Increased cotton prices have largely been fueled by strong global demand (projected global consumption for 2018/19 is 125.7 million bales, up 4.7 million bales from 2017/18 and up 10.7 million from 2016/17), shrinking global ending stocks (projected at 83.7 million bales for 2018/19 – down 27 million bales since 2014/15), and drought concerns in Texas. Wheat futures prices started a new rally this week after declining the past two weeks. While weather conditions will be the domi-nant influence in markets for the next few months there are still concerning supply and demand fundamentals for wheat. From the 2012/13 to 2018/19 marketing year, global demand for corn, soybean, and cotton has increased 24%, 36%, and 17% - wheat de-mand has increased 9%. Strong demand provides support for prices. Increased prices for corn will provide support for wheat, but demand growth does not currently favor the wheat market. Corn Across Tennessee, average corn basis (cash price-nearby futures price) strengthened or remained unchanged at Memphis, North-west, Lower-middle, and Upper-middle Tennessee and weakened at Northwest Barge Points. Overall, basis for the week ranged from 16 under to 30 over the July futures contract with an average of 5 over at the end of the week. July 2018 corn futures closed at $4.02, up 6 cents since last Friday. For the week, July 2018 corn futures traded between $3.94 and $4.04. Corn net sales report-ed by exporters from May 4-10 were within expectations with net sales of 38.8 million bushels for the 2017/18 marketing year and 5.1 million bushels for the 2018/19 marketing year. Exports for the same time period were down 12% compared to last week at 61.6 million bushels. Corn export sales and commitments were 99% of the USDA estimated total annual exports for the 2017/18 marketing year (September 1 to August 31) compared to a 5-year average of 92%. Ethanol production for the week ending May 11 was 1.058 million barrels per day, up 18,000 from the previous week. Ethanol stocks were 21.505 million barrels, down 459,000 barrels. Jul/Sept and Jul/Dec future spreads were 9 and 18 cents, respectively.

The Crop Progress report estimated corn planted at 62% compared to 39% last week, 68% last year, and a 5-year average of 63%; and corn emerged at 28% compared to 8% last week, 29% last year, and a 5-year average of 27%. In Tennessee, corn planted was estimated at 86% compared to 65% last week, 87% last year, and a 5-year average of 84%; and corn emerged at 61% compared to 22% last week, 72% last year, and a 5-year average of 62%. In Tennessee, September 2018 corn cash forward contracts averaged

(Continued on page 4)

4

Crop Comments by Dr. Aaron Smith

$3.99 with a range of $3.84 to $4.30. September 2018 corn futures closed at $4.11, up 6 cents since last Friday. December 2018 corn futures closed at $4.20, up 6 cents since last Friday. Downside price protection could be obtained by purchasing a $4.30 De-cember 2018 Put Option costing 38 cents establishing a $3.92 futures floor. Soybeans

Average soybean basis strengthened or remained unchanged at Memphis, Northwest Barge Points, Northwest, and Lower-middle Tennessee and weakened at Upper-middle Tennessee. Basis ranged from 46 under to 12 over the July futures contract at elevators and barge points. Average basis at the end of the week was 4 under the July futures contract. July 2018 soybean futures closed at $9.98, down 5 cents since last Friday. For the week, July 2018 soybean futures traded between $9.92 and $10.26. Net sales report-ed by exporters were within expectations with net sales of 10.3 million bushels for the 2017/18 marketing year and 8.3 million bushels for the 2018/19 marketing year. Exports for the same period were up 39% compared to last week at 24.0 million bushels. Soybean export sales and commitments were 89% of the USDA estimated total annual exports for the 2017/18 marketing year (September 1 to August 31), compared to a 5-year average of 98%. July soybean-to-corn price ratio was 2.48 at the end of the week.

Jul/Aug and Jul/Nov future spreads were 4 and 10 cents, respectively. August 2018 soybean futures closed at $10.02, down 5 cents since last Friday. The Crop Progress report estimated soybeans planted at 35% compared to 15% last week, 29% last year, and a 5-year average of 26%; and soybeans emerged at 10% compared to 7% last year and a 5-year average of 6%. In Tennessee, soybeans planted were estimated at 26% compared to 7% last week, 17% last year, and a 5-year average of 19%; and soybeans emerged at 4% compared to 3% last year and a 5-year average of 3%. In Tennessee, Oct/Nov 2018 soybean cash contracts average $9.97 with a range of $9.72 to $10.25. November 2018 soybean futures closed at $10.08, down 6 cents since last Friday. Downside price protec-tion could be achieved by purchasing a $10.20 November 2018 Put Option which would cost 57 cents and set a $9.63 futures floor. Nov/Dec 2018 soybean-to-corn price ratio was 2.40 at the end of the week.

Cotton

Delta upland cotton spot price quotes for May 17 were 84.03 cents/lb (41-4-34) and 85.78 cents/lb (31-3-35). Adjusted World Price (AWP) decreased 1.49 cents to 74.09 cents. July 2018 cotton futures closed at 86.55 cents, up 1.93 cents since last Friday. For the week, July 2018 cotton futures traded between 83.36 and 87.6 cents. Net sales reported by exporters were down from last week with net sales of 153,300 bales for the 2017/18 marketing year and 229,300 bales for the 2018/19 marketing year. Exports for the same period were down 17% compared to last week at 422,700 bales. Upland cotton export sales were 112% of the USDA estimat-ed total annual exports for the 2017/18 marketing year (August 1 to July 31), compared to a 5-year average of 98%. Jul/Oct and Jul/Dec cotton futures spreads were -2.73 cents and -4.12 cents, respectively.

Oct 2018 cotton futures closed at 83.82, up 1.8 cents since last Friday. The Crop Progress report estimated cotton planted at 36% compared to 20% last week, 31% last year, and a 5-year average of 31%. In Tennessee, cotton planted was estimated at 49% com-pared to 10% last week, 31% last year, and a 5-year average of 29%. December 2018 cotton futures closed at 82.43, up 2.19 cents since last Friday. Downside price protection could be obtained by purchasing an 83 cent December 2018 Put Option costing 5 cents establishing a 78 cent futures floor.

(Continued on page 5)

5

Crop Comments by Dr. Aaron Smith

Wheat

In Tennessee, June/July 2018 wheat cash contracts ranged from $4.75 to $5.15 for the week. July 2018 wheat futures closed at $5.18, up 20 cents since last Friday. July 2018 wheat futures traded between $4.86 and $5.18 this week. July wheat-to-corn price ratio was 1.29. Wheat net sales reported by exporters were within expectations with net sales of 2.3 million bushels for the 2017/18 marketing year and net sales of 4.8 million bushels for the 2018/19 marketing year. Exports for the week were up 27% compared to last week at 15.1 million bushels. Wheat export sales were 94% of the USDA estimated total annual exports for the 2017/18 marketing year (June 1 to May 31), compared to a 5-year average of 104%. The Crop Progress report estimated winter wheat condition at 36% good-to-excellent and 36% poor-to-very poor; winter wheat headed at 45% compared to 33% last week, 61% last year, and a 5-year average of 53%; spring wheat planted at 58% compared to 30% last week, 75% last year, and a 5-year average of 67%; and spring wheat emerged at 14% compared to 4% last week, 37% last year, and a 5-year average of 36%. In Ten-nessee, winter wheat condition was estimated at 61% good-to-excellent and 5% poor-to-very poor; and winter wheat headed at 90% compared to 67% last week, 97% last year, and a 5-year average of 86%.

Jul/Sep and Jul/Jul future spreads were 16 cents and 67 cents, respectively. September 2018 wheat futures closed at $5.34, up 19 cents since last Friday. July 2019 wheat futures closed at $5.85, up 16 cents since last Friday. Downside price protection could be obtained by purchasing a $5.90 July 2019 Put Option costing 56 cents establishing a $5.34 futures 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, May 11, 2018 — Thursday, May 17, 2018

Commodity Contract Month Friday Monday Tuesday Wednesday Thursday

Soybeans May 9.94 10.13 —— —— ——

($/bushel) Jul 10.03 10.17 10.18 9.99 9.95

Aug 10.07 10.21 10.22 10.03 9.98

Sep 10.10 10.20 10.22 10.05 10.01

Nov 10.14 10.23 10.24 10.09 10.04

Jan 10.19 10.27 10.28 10.13 10.08

Corn May 3.89 3.89 —— —— ——

($/bushel) Jul 3.96 3.96 4.02 3.99 3.95

Sep 4.05 4.04 4.10 4.07 4.03

Dec 4.14 4.14 4.19 4.17 4.13

Mar 4.23 4.23 4.27 4.25 4.21

May 4.28 4.28 4.31 4.30 4.26

Wheat May 4.89 4.80 —— —— ——

($/bushel) Jul 4.98 4.91 4.93 4.94 4.97

Sep 5.15 5.08 5.09 5.10 5.13

Dec 5.37 5.30 5.31 5.31 5.34

Mar 5.55 5.48 5.49 5.49 5.52

Soybean Meal May 382 389 —— —— ——

($/ton) Jul 378 387 382 3.76 375

Aug 376 384 380 3.75 373

Sep 375 382 378 3.73 371

Oct 373 378 375 3.71 369

Dec 371 377 374 3.69 367

Cotton Jul 84.62 83.70 83.76 84.35 85.03

(¢/lb) Oct 82.02 81.20 81.34 82.40 82.90

Dec 80.24 79.86 80.11 80.69 81.45

Mar 80.06 79.65 79.91 80.49 81.36

May 80.20 79.88 80.13 80.70 81.68

Live Cattle Jun 107.62 104.62 102.97 101.82 103.05

($/cwt) Aug 104.42 101.90 100.40 99.05 99.10

Oct 107.47 105.27 103.75 102.30 102.30

Dec 111.80 110.00 108.60 107.62 108.20

Feb 114.60 112.45 111.22 110.52 111.40

Feeder Cattle May 138.42 135.40 133.55 132.72 133.10

($/cwt) Aug 143.90 140.37 138.45 136.72 138.72

Sep 143.97 140.80 138.95 137.37 139.07

Oct 144.47 141.55 139.60 138.22 139.75

Nov 144.92 142.10 140.27 139.12 140.67

Jan 141.50 138.92 137.32 136.40 137.80

Market Hogs May 65.30 65.25 65.25 65.23 ——

($/cwt) Jun 75.10 76.15 74.72 75.90 76.47

Jul 76.97 78.72 77.70 78.72 78.20

Aug 76.95 78.37 77.45 77.85 77.62

Oct 63.35 64.42 63.25 63.62 63.67

Futures Settlement Prices: Crops & Livestock

7

Cattle Receipts: This week: 7,386 (10) Week ago: 8,115 (10) Year ago: 5,058 (8)

This Week Last Week Year Ago

Low High Weighted Average Weighted Average Weighted Average

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

Steers: Medium/Large Frame #1-2

300-400 lbs 144.00 190.00 169.05 175.32 173.84

400-500 lbs 138.50 176.00 159.73 164.49 163.79

500-600 lbs 125.00 167.00 152.00 157.06 157.75

600-700 lbs 125.00 153.00 142.47 143.15 148.77

700-800 lbs 115.00 144.50 131.81 129.84 140.36

Steers: Small Frame #1-2

300-400 lbs 118.00 155.00 140.36 158.40 144.01

400-500 lbs 112.00 147.00 134.16 144.95 143.25

500-600 lbs 121.00 145.00 134.66 135.00 ———

600-700 lbs ——— ——— ——— 129.62 ———

Steers: Medium/Large Frame #2-3

300-400 lbs 135.00 180.00 153.59 166.78 159.59

400-500 lbs 130.00 158.00 145.93 157.95 151.78

500-600 lbs 120.00 150.00 138.16 140.93 142.36

600-700 lbs 122.00 142.00 130.08 130.47 135.04

700-800 lbs 109.00 131.00 117.59 114.15 119.47

Holstein Steers

300-400 lbs ——— ——— ——— —— ———

500-600 lbs ——— ——— ——— 81.41 89.64

700-800 lbs ——— ——— ——— —— ———

Slaughter Cows & Bulls

Breakers 75-80% 47.50 52.82 54.41 60.45 59.00

Boners 80-85% 56.22 56.49 63.24 48.00 65.00

Lean 85-90% 40.00 56.50 48.93 50.68 58.55

Bulls YG 1 73.50 86.50 79.25 79.89 87.37

Heifers: Medium/Large Frame #1-2

300-400 lbs 127.50 169.00 149.00 152.54 154.62

400-500 lbs 120.00 161.00 141.61 142.36 146.42

500-600 lbs 112.50 149.00 131.47 135.12 137.49

600-700 lbs 111.00 134.00 122.16 124.40 130.38

Heifers: Small Frame #1-2

300-400 lbs 127.50 142.50 133.54 —— 123.25

400-500 lbs 112.50 129.00 124.18 —— 126.70

500-600 lbs 116.00 118.00 117.00 —— 122.33

600-700 lbs 110.00 111.00 110.67 —— 111.30

Heifers: Medium/Large Frame #2-3

300-400 lbs 125.00 152.00 139.79 140.35 140.01

400-500 lbs 116.00 148.00 133.03 137.28 136.46

500-600 lbs 110.00 131.50 123.04 126.78 127.88

600-700 lbs 104.50 124.00 116.11 118.67 120.57

Prices on Tennessee Reported Livestock Auctions for the week ending May 18, 2018

8

Friday, May 11, 2018 — Thursday, May 17, 2018

Friday Monday Tuesday Wednesday Thursday

Low High Low High Low High Low High Low High

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

No. 2 Yellow Soybeans

Memphis 10.11-10.15 10.29-10.29 10.28-10.30 10.09-10.11 10.05-10.07

N.W. B.P. 10.07-10.11 10.22-10.26 10.23-10.30 10.06-10.11 10.02-10.07

N.W. TN 9.55-9.83 9.77-10.01 9.73-9.98 9.69-9.79 9.65-9.75

Upper Md. 9.82-9.93 10.00-10.07 9.96-10.08 9.79-9.89 9.72-9.85

Lower Md. 10.03-10.03 10.17-10.17 10.18-10.18 9.99-9.99 9.95-9.95

Yellow Corn

Memphis 4.14-4.18 4.14-4.18 4.22-4.24 4.19-4.21 4.15-4.17

N.W. B.P. 4.06-4.11 4.07-4.11 4.13-4.17 4.10-4.14 3.95-4.09

N.W. TN 3.81-3.97 3.81-3.97 3.87-4.02 3.84-3.99 3.80-3.95

Upper Md. 3.86-3.96 3.86-3.96 3.92-4.02 3.89-3.99 3.85-3.95

Lower Md. 4.19-4.19 4.26-4.26 4.32-4.32 4.29-4.29 4.25-4.25

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

East TN Livestock Center—May 16, 2018 1 load out of 53 Holstein steers; 95% #1s, 5% #2s; medium flesh; est. wt. 965 lbs.; $82.75 1 load out of 100 Holstein steers from BQA certified producer; 100% #1s; medium flesh; est. wt. 975 lbs.; $82.50 Hardin County Stockyard—May 16, 2018 1 load 190 head steers; M&L-1s; ChX, Red/RWF, Black/BWF; est. wt. 1082 lbs.; $109.00 Lower Middle Tennessee Cattlemen's Video Board Sale Weighted Average Report for May 11, 2018 Cattle Receipts: 699 For complete report: https://www.ams.usda.gov/mnreports/nv_ls184.txt

East TN Livestock Graded Holstein Sale, Sweetwater, TN Weighted Average Report for Friday, May 11, 2018 Cattle Receipts: 1152 For complete report: https://www.ams.usda.gov/mnreports/nv_ls182.txt

5/14/18 Morris Brothers Stockyard, Pikeville, TN Receipts: 115 Last Week: 71 Last Year: 77 Steers: Heifers: 300-349 lbs 150.00 350-399 lbs 130.00-135.50 350-399 lbs 150.00 400-449 lbs 120.00-131.50 400-449 lbs 158.00 450-499 lbs 131.50-133.00 450-499 lbs 151.00 500-549 lbs 124.00-131.00 500-549 lbs 149.00-159.00 550-599 lbs 122.00-130.00 550-599 lbs 159.00 600-699 lbs 120.00 600-699 lbs 149.00-159.00 700-799 lbs 114.00-118.00 700-799 lbs 127.00 815-825 lbs 111.00 Over 799 lbs 104.00-114.50 Bulls: 300-349 lbs 153.00 350-399 lbs 142.00-146.00 400-449 lbs 139.00-154.00 450-499 lbs 135.00-139.00 500-549 lbs 134.00 550-599 lbs 132.00 600-699 lbs 119.00-121.00 700-799 lbs 91.00 Other: Cow/Calf Pairs: 1200.00-1250.00 Slaughter Cows (under 900 lbs): 19.00-35.00 Slaughter Cows (over 900 lbs): 29.00-49.00

Graded Sales

Slaughter Bulls (901-1500 lbs): 61.00 Slaughter Bulls (over 1500 lbs): 72.00 5/11/18 Coffee County Livestock Market Graded Goat and Sheep Sale Manchester, TN Receipts: 1085 (458 Goats; 615 Sheep; 12 Other) Next Sale May 25, 2018 Goats sold per hundred weight (cwt) unless otherwise noted, weights, actual or estimated. Slaughter Classes: Kids Selection 1 Selection 2 20-30 lbs 218.00-250.00 20-30 lbs 201.00-211.00 31-45 lbs 272.50-278.00 31-45 lbs 238.00-240.00 46-60 lbs 283.00-295.00 46-60 lbs 255.00-280.00 61-80 lbs 251.50-280.00 61-80 lbs 230.00-250.00 81-100 lbs 210.00 81-100 lbs 185.00 Selection 3 20-30 lbs 170.00 31-45 lbs 201.00-240.00 46-60 lbs 220.00-235.00 61-80 lbs 81-100 lbs 160.00 Feeders 161.00-168.00 Replacement Nanny Goats Yearlings 160.00-185.00 Small 70.00-111.00 Nannies 120.00-135.00 Medium 113.00-139.00 Nannies Thin 105.00-111.00 Large 140.00-175.00 Billies 145.00-158.00 Billies Thin 125.00 SHEEP: Slaughter Lambs-Includes all breeds, sold per hundred weight (cwt). Choice and Prime 20-40 lbs 210.00-219.00 Good 204.00-216.00 Choice and Prime 40-60 lbs 177.00-200.00 Good 170.00-177.00 Choice and Prime 60-80 lbs 177.00-199.00 Good 161.00-167.00 Choice and Prime 80-100 lbs 166.00-191.00 Good 151.00 Choice and Prime 100-120 lbs 154.00 Choice and Prime 125 lbs 145.00 Feeders 25-65 lbs 167.00 Replacement Ewes: Yearlings 90-106 lbs 94.00-121.00 Ewes 88.00-104.00 108-120 lbs 128.00-143.00 Ewes Fat Rams 81.00-112.00 Rams Fat

Video Sales & Loads Self-Reported and Self-Graded Livestock Markets

Self-Reported and Self-Graded Livestock Markets

10

West: Early pregnancy diagnosis could pay off

Ryan D. Rhoades May 14, 2018

As we head into the summer, dry conditions in most of the West may force producers to evaluate alternative management strategies. Open cows or potential replacement heifers are costly, especially when feed resources are limited.

Early pregnancy diagnosis provides an opportunity to make timely decisions. Unfortunately, pregnancy diagnosis is a cost and many factors determine its economic benefit (i.e., infor-mation received, potential management changes and ranch resources needed).

Understanding key differences associated with various diagnos-tic procedures can help when critically evaluating its value. Since identifying an open female is critical to our bottom line, here are a couple of considerations to help set us up for suc-cess.

1. Consider comparing pregnancy detection methods: Evalu-ating the various diagnostic procedures available is step one. Rectal palpation provides immediate results, allowing cows to be chute sorted at 35 days post-breeding. Palpation requires significant experience and can cause early embryonic loss (1 to 3 percent). Ultrasound is most expensive and requires a techni-cian but can be performed at 28 days post-breeding.

Depending on when it’s used, ultrasound is the most informa-tive tool available (i.e., results immediate and identify calf age-sex). Blood testing conducted by the rancher is the least expen-sive ($3 to $5) and invasive method, accurate at 30 days post-breeding. Results are delayed (two to four days), no calf infor-mation is available, and cows should be 90 days post-calving to avoid false positives.

2. Consider evaluating potential management and marketing changes: Early diagnosis is a tool used to manage and market cattle. Obtaining the highest value for every female is critical. Identifying late-calving cows that have market value and fit another ranch’s calving season is one way to capitalize.

Additionally, selling open cows or heifers prior to the seasonal cull cow market price decline (August) has huge economic ben-

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efit. If forage availability is below normal, selling known open cows or heifers extends forage resources and reduces feed costs.

3. Consider ranch resources available: Determining the best diagnostic option is difficult. Consider the resources available before making a final decision. A good veterinarian or techni-cian capable of palpating or ultrasound is required. The type of female being evaluated is important. Since heifers don’t have a calf by their side, blood test and quick marketing is an option.

Conversely, cow-calf pairs not being weaned early, palpation at a later date works. If labor is limited, knowing when cows will calve allows for tactical hiring. Overcoming the challenges asso-ciated with managing open females requires spending some money and time. However, identifying them early can lead to increased profitability.

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

arec.tennessee.edu USDA / Tennessee Department of Agriculture Market News Service http://www.tennessee.gov/agriculture/article/ag-farms-market-news 1-800-342-8206