Calf and stocker prices jumped sharply last week in Oklahoma and across the country.  In Oklahoma, a combination of renewed stocker demand for winter wheat grazing and lower auction volumes pushed calf and stocker prices up.  After auction volumes were higher year over year in September and October, Oklahoma auction volumes have been significantly lower in November.  Some of the reduced volume was due to wet conditions but it likely also reflects smaller available supplies after the early fall run. Volumes are likely to be reduced for the remainder of the year.

Figure 1 shows the constellation of feeder prices in Oklahoma auctions including the jump this past week and the change in prices since the seasonally early fall low in September.  Notice that most of the price strength is on the lightweight end of calf and stocker prices.  Heavy feeders have shown little price change, especially this past week.  

Table 1 shows the value of gain using the latest weekly feeder prices for beginning weights ranging from 400 to 650 pounds and ending weights up to 900 pounds.  For example, purchasing a 500-pound steer this week at $322.26/cwt. results in a value of 250 pounds of gain at 750 pounds of $1.16/lb. (based on value of a 750-pound steer at $253.63/cwt.) However, that same steer at 900 pounds (current price $242.92/cwt.), has a value of gain of $1.41/lb. for the entire 400 pounds of gain. 

Table 1.  Value of Gain, Combined Oklahoma Auctions, November 15, 2024

These values of gain are based on the current market and will depend on the actual selling price of the feeders.  The example of 250 pounds of gain to 750 pounds could represent winter grazing until March. The current March Feeder Futures price is about $245/cwt. which implies a March Oklahoma cash price of roughly $247/cwt., which is lower than the current price of $253.63/cwt.  Taking the steer to 900 pounds might be looking at a May price with Feeder Futures current at roughly 246/cwt. and implies an Oklahoma cash price of roughly $229/cwt., compared to the current cash price of $242.92.  In both cases, the futures prices are lower than the current market meaning that the value of gain in Table 1 could be overestimated based on current market values.