KNOXVILLE, Tenn. — Feeder cattle producers eager to capture historically high prices should not bypass practices such as preconditioning and castration that add value to calves.

Andrew Griffith, University of Tennessee livestock marketing specialist, said Tennessee auction prices in September showed a growing steer-bull price spread during the week ended Sept. 12. His analysis reported 525-pound steers bringing $75 more than bulls, while steers in the 675-pound range brought $158 more.

“It is imperative producers understand the value left on the table when male stocker and feeder cattle are not castrated before marketing,” he said.

Some producers may bypass castration from a hurry to get their cattle sold, said Kenny Burdine, University of Kentucky livestock marketing specialist.

“This is likely driven by a fear that the market will drop between weaning and sale or by a notion that the market won’t pay for increased quality when prices are high,” he explained.

Those fears do not pan out. “In my opinion, market risk exists at all times and is no more concerning during strong markets than weak markets,” said Burdine. Since most bulls will be castrated before entering feedlots, bull-steer price differences reflect how buyers value risk.

“The older the bulls are at castration, the more stress, and that means higher mortality and morbidity risk. The fact that markets are so strong makes poor performance a greater concern.” 

Bull calves usually gain faster than steers. But that feed efficiency is not likely to make up a bull-steer feeder price spreads approaching $100 and more. “The cost of castration does not normally exceed the added value,” said Griffith.

Discounts for bulls are also greater at this time of year, he said. With more feeder cattle available than in spring, buyers put a premium on filling loads with steers.

The value of selling steers is not limited to the Mid-South. A 2010 Kansas State University analysis of feeder cattle prices in Kansas and Missouri showed bull discounts, relative to steers, were less in the spring than in the fall. The same analysis also showed deeper discounts for bulls at heavier weights.