Friday 27th January 2012

Direct trade hogs close higher in the west

Chicago mercantile Exchange live cattle contracts settled 55 points higher to 25 lower. Spot December was supported by higher beef carcass values and the prospect of steady to higher feedlot cattle prices again this week. Trade volume was light with many regulars out for the holidays. December was up 55 points at 84.22, and February was down 25 at 85.12.

Feeder cattle ended the session 20 to 55 points lower. The softness in the feeder pit was attributed to profit taking and a degree of bear spreading according to DTN. January feeders settled 55 poits lower at 94.97, and March was down 22 at 94.72.

Cattle country was at a virtual standstill on Tuesday. There appears to be mixed opinions as to the degree of business and prices expected in the feedlot trade this week. Some sources believe packers may have sufficient inventory on hand and may be willing to pay only steady money with last week. Others feel that with higher boxed beef prices improving margins, packers may be willing to pay a little more. Asking prices are 85.00 to 86.00 in the South while bids are only 81.00 to 82.00. Northern asking prices are at 135.00 plus with no bids reported. While the new show lists are generally mixed, the increases in the South are a good deal larger than the decreases in the North. Tuesday’s cattle slaughter was estimated at 124,000 head, 3,000 less than last week and 5,000 down from last year. Boxed beef cutout values ended the day firm to higher on light to moderate demand and light offerings. Choice beef was up .38 at 139.42, select was up 1.32 at 133.80.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.79 higher at 61.43 on a carcass basis, the West was up 1.86 at 61.50, and the East was down .45 at 57.94. The Missouri direct base carcass meat price is steady to 1.00 lower from 51.00 to 55.00. Hog slaughter was estimated at 437,000 head, 1,000 more than last week, and 3,000 greater than last year. While the pork carcass value started the week higher it closed 1.03 lower at 67.58 on Tuesday. Pork trading was moderate, with light demand and mostly moderate offerings.  There is speculation the Saturday kill could be as large as 300,000 head according to DTN.

Lean hogs settled 7 to 80 points higher with the best buying interest in the front months.. February and April garnered support from bull spreading and news of higher cash sales in the direct trade areas west of the Mississippi. February was up 72 points at 65.42, and April was 322 higher at 70.02.

Pork bellies ended 100 points lower in the February contract, settling at 85.50 in a quiet session.

Closing Grain and Livestock Futures: December 29, 2009

March corn closed at $4.17, up 1 cent
January soybeans closed at $10.38, up 9 cents
January soybean meal closed at $314.90, up $4.50
January soybean oil closed at 39.43, down 20 points
March wheat closed at $5.41, down 9 and 3/4 cents
December live cattle closed at $84.22, up 55 cents
February lean hogs closed at $65.42, up 72 cents
February crude oil closed at $78.87, up 10 cents
March cotton closed at 75.07, down 75 points
January Class III milk closed at $14.33, up 3 cents
Dow Jones Industrial Average: 10,545.41, down 1.67 points

CropLife America

Kellie Bray, Director of Government Affairs for CropLife America says when it comes to many of the issues they deal with in Washington, D.C., education is critical in making sure farmers have crop protection products available in their management tool box. 

AUDIO: Kellie Bray, Director, Gov’t Affairs (3:25 MP3)

KellieBray-CropLifeAmerica

New YF&R committee members named

Bob Stallman, President of the American Farm Bureau Federation (AFBF) has appointed eight new members to the organizations Young Farmer and Rancher Committee (YF&R), for a 2-year term.

“I am always impressed with the quality of people who are nominated for these positions and this year is no exception,” said AFBF President Bob Stallman. “It is important to ensure that the future of agriculture is in good hands and I am confident that these individuals will become great leaders as they have already given so much back to their communities.”

New committee members include; Jason Bunting, Illinois; Derek Sawyer, Kansas; Daniel and Alison Smith, Kentucky; Ben and Kelsey LaCross, Michigan; Dan and Seena Glessing, Minnesota; Patrick and Kim Swindoll, Mississippi; Dustin Ladenburger, Nebraska; and Scott and Mendy Sink, Virginia.

“I am very proud of these new members and their accomplishments so far in their Farm Bureau Careers,” said Stallman. “I look forward to the work they will do on the YF&R Committee as well as watching them become even stronger and more capable leaders for American agriculture.”

Quite a year for ethanol

“2009 was sort of ‘The Tale of Two Cities.” That is how Bob Welch describes what happened to the ethanol industry this year. Welch has The Welch Group, a government relations firm which represents a number of ethanol interests at the state capital in Wisconsin.  He notes the industry was in the midst of collapse at the start of the year and has rebounded modestly by the end of the year, “I think we are going to see a strong 2010.”

There are nine ethanol plants in Wisconsin and all are running although not at full capacity. The largest, Renew Energy was recently sold at a bankruptcy auction where there were four bidders. Welch says there are a few strategic investors interested in ethanol plants, “Because they do see the upside.” However, he says the “guys with the big money are still being scared off by the headlines that are less than a year old.” Welch thinks the fact that Valero Energy, an oil refinery company is buying ethanol plants should prompt more confidence from other potential investors.

He also believes the E-15 blend rate will be approved this summer and that will be good for the ethanol industry as well.

Bob Welch talks about the industry:

Welch

Midday cash livestock markets

Barrows and gilts in the Iowa/Minnesota direct trade is up 2.06 at 61.70 on a carcass basis, the West is up 1.97 at 61.61, and the East is down .73 at 57.66. The Missouri direct base carcass meat price is steady to 1.00 lower from 51.00 to 55.00. Pork processors may be eager to crank up production as soon as possible. Carcass value bounced back Monday thanks in part to a 4.93 jump in the belly primal. Furthermore, there is talk the Saturday kill could be as large as 300,000 head according to DTN.

Cattle buyers and sellers may be a little more patient headed into the New Year’s holiday than they were last week. DTN says significant trade volume may not surface before Wednesday. Activity as early as today, unlike last week may be even more unlikely given greater country confidence linked to both recent cash success and Monday’s board rally. Asking prices are around 85 to 86 in the South and 135 plus in the North.

Slaughter cattle receipts today at United Producers, Shelbyville, IL totaled 520 head. Compared to last week slaughter steers and heifers are trading 1.50 higher. Slaughter Holstein steers are 1.00 higher. Choice 2-3 slaughter steers 81.00 to 85.00, heifers 81.00 to 84.25 at Shelbyville. Choice 2-3 slaughter Holstein steers are bringing 74.50 to 79.25.

Boxed beef cutout values are higher at midday, choice beef is up .43 at 139.47; select is 1.23 higher at 133.71.

When opinion shouldn’t matter

Commentary

Most of you know that in a former life I was a newspaper/magazine reporter and editor. Journalism is one of those professions that’s always a part of you. I still attend meetings and have DC conversations which trigger that antenna in my head, and I start thinking: “Gosh, I wish I could write a story about this.”

So I view today’s journalists and their endeavors through a lens of my education and experience with the printed word. Most of the time I chuckle to myself. A good example is watching TV “journalism,” or the neverending struggle to fill a 24/7 newshole. While back in Minnesota for Christmas, my favorite moment was the teaser for a story on the “historic December blizzard” that threatened Minneapolis. The TV anchor/news reader, “teasing” the story for the next news segment, almost screamed into the camera: “Do you have travel plans for the holiday? Well, MAYBE NOT!!!”

More and more I’m just plain frustrated by what passes for “journalism” these days. Gone is the bedrock rule of objectivity in stories, gone is balance of viewpoint, replaced by “point-of-view” reporting, or “narrative journalism.” Call it what you will, most of it’s a crock — it’s editorializing and opinion mongering purely and simply, and done to sell subscriptions and advertising.

A good example is this week’s story from Associated Press with the headline “Pressure rises to stop antibiotics in agriculture.” Written by one reporter out of Mexico City and one reporter who’s a fellow of the Nieman Foundation at Harvard Universtiy, the piece is one of the most factually inaccurate and subjective stories I’ve read on the use of low-level antibiotics on farm. Statements on which products are/were used in ag and how they’re used are wrong and there are huge gaps in the context of antibiotic use, meaning are we talking human or animal use?

Now, in the interest of full disclosure, I represent a company which manufactures and sells livestock and poultry antimicrobials, and I’ve been involved in the antibiotics issue for more years than I can remember, both during my days as the head of government affairs for the American Feed Industry Assn. (AFIA) and as a consultant. However, what this experience has taught me is the science of the issue, the facts of the products’ use, the rigor of federal and state regulation, and the benefits inherent in keeping animals healthy, no matter what production system you may choose to use.

This article obviously was pitched to an editor by a reporter with a viewpoint. Now, keep in mind neither of the reporters who created this “narrative” have an obvious expertise or on-farm experience. They build the story off a farmer who developed a strep infection after being gored by a boar, and the obvious problem with his treatment was that his pig feed contained penicillin. Then there’s always the assumed Google search for “on-farm antibiotic use and why it’s just plain wrong.”

Most of the sources are avowed opponents of technology in agriculture. The general statements about resistance in humans to antimicrobials by medical folks are broad statements. No where in the story is there any mention of chronic overuse of the drugs by physicians and hospitals, no where are the critics’ statements and allegations balanced by experts/scientists who refute these claims. No where do they discuss the animal suffering and death that will almost certainly result from a loss of these products.

One colleague refers to this kind of reporting as “journalistic epidemiology,” the weaving of a science story implying an assumed cause-and-effect where none has been established. Apparently, the rule of the day is not to let facts get in the way of a good story.

This is our challenge — educating reporters so this kind of science fiction does not get passed off as fact. The public won’t check to see if the reporting is accurate, and they’ll buy into the “scariness” of the reporting.

The general media have always done a crappy job of reporting on what happens on the farm. Maybe it’s because there’s nothing “sexy” about feeding 300 million folks affordably, safely and sustainably.

That’s too bad, because to my mind there’s even less “sex” in watching animals get sick and die and folks struggling to make ends meet go hungry.

U.S. wheat officials court Saudi buyers

Saudi Arabia’s decision to end its domestic wheat production program has set off an intense competition among wheat exporting countries hoping to capture a share of that market.

Among those participating in a recent U.S. Wheat Associates’ trade mission to Saudi Arabia was Nebraska Wheat Board executive director Royce Schaneman.

“Saudi Arabia is probably not going to a huge market,” says Schaneman, “but certainly where they were self-sufficient for a number of years and now they’re going to be back buying all their wheat, it does make a substantial market—basically a new market again.”

The Saudis are phasing out their own wheat program and have already begun buying some foreign wheat.  U.S. Wheat says they may eventually need to import more than two-point-five million metric tons—or 91 million bushels of wheat per year. 

Schaneman says U.S. wheat is at a disadvantage when it comes to price and shipping costs—so he says U.S. Wheat officials stressed the quality and variety of U.S. wheat, and the reliability of U.S. producers.  “I think we really opened some eyes with looking at good quality wheat—not just solely the price of wheat and the price of shipping,” he says. “There’s a lot of different quality characteristics that we want them to account for.”

The trade mission also included stops in Egypt, Jordan, Dubais and Kenya. 

Schaneman says Saudi Arabia could become a good market for Nebraska, as hard red wheat is one of the staple wheats they are interested in purchasing.

AUDIO: Royce Schaneman

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Raising the yield bar

What needs to happen in order for 300 bushel corn becomes routine? Emerson Nafziger, Extension Agronomist at the University of Illinois has cooked up a recipe that calls for adquate water and sunshine, and other management practices that should be economically and agronomically sound.

AUDIO: Emerson Nafziger, University of Illinois (3:00 MP3)

Fido has a carbon footprint, too!

Commentary

It’s not just animal agriculture getting a bad rap for greenhouse gas emissions.  A New Zealand couple suggests that a medium sized dog has a carbon footprint twice the size of a 4-wheel drive vehicle driven 6,200 miles annually. 

Other pets are not much better, so the couple suggests you find dual purpose pets, like a hen, which provides you with eggs.

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