It’s imperative that Ontario cow operators find ways to lower their cow feed cost. The prices of alfalfa hay, distillers grains, and corn are all rising. To make ends meet, cow operators must reduce feed costs and maximize returns. But where can they find the best deals? Here are a few resources to help you make your decision.
Contents
Price of distillers grains
The price of distillers grains for cow feed is typically higher than corn. It can be as much as 20% more expensive than corn. However, this higher cost is offset by the improved animal performance that distillers grains provide. It is best to buy distillers grains from a reputable distillery, which is likely to have low CV and good quality.
The current price of corn is forcing cattle feeders to question how much distillers grains can be included in their feed programs. While this desire is understandable, concurrent increases in corn co-products have dampened the desire to increase the percentage of corn for cattle. Wet CGF is priced at 75-85% of the price of corn, while dry CGF and modified DG are sold at 90-95%. This is an acceptable price, because the net cost of distillers grains is less than corn.
Price of soybeans
Soybeans are valued as a protein source first, but their value varies depending on the feeding situation and crop variety. High-performance animals require higher levels of protein and fat. Conversely, low-productivity animals do not require high levels of fat or protein. The least-cost formulations value soybeans at or near 48% SBM, while high-fat soybeans are priced above this value. In general, the price of soybeans will depend on the amount of soybean meal and the amount of grain.
A large portion of soybeans in Wisconsin are roasted. As a result, they have a higher price than raw soybeans. Roasted soybeans are often fed to dairy cattle. However, it is important to check the quality of the soybeans before feeding them to cattle. If there is any mold, the soybeans should be rejected. Otherwise, they should be replaced with a palatable forage.
Price of alfalfa hay
The price of alfalfa hay for cattle feed can vary widely from year to year. While the price of alfalfa in the fall is usually around $90 per ton, it can climb to as high as $300 per ton in the winter. The price of alfalfa is largely determined by how much feed it is worth to livestock. The more valuable the alfalfa is, the higher the price will be.
In addition to calculating the price, you should also look into the quality of the hay. Higher quality alfalfa is more valuable to dairy producers and will command higher prices. This, of course, depends on the supply and demand conditions.
Price of corn
The high price of corn for cow feed is affecting feedlot operators, but the situation is not entirely grim. While the CME DEC ’22 corn contract has fallen from its high of $7.64 a bushel on May 16 to $6.23 a bushel on June 3, the same trend has also been evident in distiller’s grains, which have also fallen. As corn prices fall, feeder cattle prices should rise, as lower feed costs help make cows more profitable and boost the value of feeder cattle.
The iFarm Price Distribution Tool shows that the probability of corn prices in December falling below $4.50 is less than one in two. On the other hand, there is a 29 percent chance of corn prices in December rising above $6.00. Meanwhile, the stocks to use ratio of corn in the U.S. is 8.5 percent, which is lower than it was five years ago. In addition, the number of acres that corn will be grown in 2021 is not known.
Price of corn plus feed markup
The price of corn is often a big driver of the price of beef, and it affects the price of gasoline. High corn prices have led to higher prices for cattle. The number of cattle in the United States is declining, and the USDA recently said the number of cattle in the nation was the lowest since 1973. In addition to raising beef prices, corn also affects the price of gasoline, as some of it is blended with ethanol.
When considering the price of corn, it is necessary to consider its supply chain. Typically, corn must be dried, ground into meal or flour, and then pressed into syrup or other products. These products are then marked up by supermarkets, which are now facing stiff competition from drugstores and big-box retailers.
Price of soybeans plus feed markup
The energy value of rations is computed based on a formula that shows how much feed should cost per pound of dry matter. Many commercial feeders mark up feed to make $.20 per pound of dry matter, which translates to $20 per ton of feed.
