Cattle and hog futures end the week higher

Cattle trading on Friday was light in Texas at 98.00. Trade was also limited on light demand in Kansas, the Northern Plains as well as the Western Corn belt. Not enough sales in any feeding region to establish an adequate market test. Cattle traded earlier in the week at 98.00 to 98.50 in the South. In the North and western Corn Belt live sales were reported at 98.00 to 99.50 and dressed sales from 157 to 159.00. Show lists may be somewhat larger on Monday with carryover cattle evident in parts of the South. On the other hand processing margins remain excellent, a reality that should spark large packer appetites. As of Friday afternoon USDA Mandatory reported the negotiated cattle sales for the week at 153,939 head, 18,234 head less than last week. The weekly cattle slaughter was estimated at 660,000 head 19,000 more than a week ago and 6,000 less than last year. Boxed beef cutout values were steady to firm on light to moderate demand and offerings. Choice boxed beef was up .25 at 170.21, and select was .06 higher at 167.08.

Chicago Mercantile exchange live cattle contracts settled 20 to 95 points higher, Strong commercial and noncommercial buying entered the market at week’s end as outside financial markets soften once again. But the strong support in the outside commodity markets have allowed fund buyers to remain attracted to the live cattle futures for now. April went off the board at noon at 99.92 up .95; June was up .35 at 94.22.

Feeder cattle ended the session 10 to 52 points higher on support from the live pit. The higher corn prices haven’t seemed to dampen the feeder cattle markets as the momentum in the outside commodity markets have traders jumping into the livestock markets. May settled .27 higher at 112.80, and August was up .25 at 116.07.

Feeder cattle receipts at Missouri auctions this week totaled 30,930 head. Compared to last week feeder steers less than 500 pounds sold steady to 5.00 to 7.00 higher.  Feeder steers over 500 pounds and all weights of heifers sold steady to 3.00 higher. Feeder steers medium and large 1; 864 head averaging 576 pounds traded at 127.15, 568 heifers averaging 574 pounds brought 116.45 per hundredweight.

 Barrows and gilts in the Iowa/Minnesota trade closed at 82.57, the West ended at 82.64 on a carcass basis, both were down .09, the East was 1.28 higher at 83.80.The weekly hog kill was estimated at 2,028,000 head, 45,000 less than last week, and 19,000 fewer than a year ago. Despite minimal Saturday kill plans, light country receipts in the late rounds this week probably means pork packers will start the week quite close to the knife on Monday.

 Lean hog contracts ended sharply higher from 87 to 250 points. The support in the market was somewhat unclear as the fundamental market has not changed. The support in the live cattle market over the last couple of days has allowed for additional investor trade to jump into the lean hog market, and encouraging additional support according to DTN.  May lean hogs were up 1.92 at 89.62 and June was up 2.50 at 86.32. Pork trading was slow, with light to moderate demand and offerings. The pork carcass cutout was down .24 at 89.96.

Pork bellies finished higher on support from the lean pit and short covering. July was .80 higher 898.60.

Closing Grain and Livestock Futures: April 30, 2010

May corn closed at $3.66 and 1/4, up 5 and 3/4 cents
May soybeans closed at $9.89 and 1/2, up 3 and 3/4 cents
May soybean meal closed at $291.30, up $3.90
May soybean oil closed at 38.58, down 22 points
May wheat closed at $4.91 and 3/4, up 7 and 1/4 cents
April live cattle closed at $99.92, up 95 cents
May lean hogs closed at $89.52, up $1.92
June crude oil closed at $86.15, up 98 cents
May cotton closed at 82.76, up 111 points
May Class III milk closed at $13.99, up 4 cent
Dow Jones Industrial Average: 11,008.61, down 158.71 points

Cash receipts from milk drop in 2009

As if we didn’t already know 2009 was a tough year for dairy farmers, the Indiana field office of the National Ag Statistics Service (NASS) reports cash receipts from marketings of milk in Indiana totaled $450 million, down 30 percent from 2008. Producer returns averaged $13.40 per hundredweight, down $6.20 cwt. from the 2008 average.

Nationwide, cash receipts from marketings of milk was down 30.1 percent at $24.3 billion.

Indiana 32nd in cash receipts for cattle

Indiana saw cash receipts from marketings of cattle and calves in 2009 drop 11 percent to $224.4 million, ranking the Hoosier State 32nd among all states. Nationally, cash receipts totaled $48.5 billion, down 10 percent from 2008.

All cattle and calf marketings in Indiana totaled 297.1 million pounds, down 7 percent from the previous year. Total U.S. cattle and calf marketings totaled 54.1 billion pounds, a 1 percent decline from 2008.

New IDEM permit policy

Beginning June 7 the Indiana Department of Environmental Management (IDEM) will have a new policy in effect when it comes to applications for CFO and CAFO permits. Andy Taurer, Agricultural Liaison at IDEM tells Brownfield the new policy will include a checklist of what’s required.

“So whether a producer is working with a consultant or trying to submit an application on his own, he would have a copy of what’s required,” said Tauer.

Permit applications that do not meet the new policy requirements will be denied immediately.

Information is available by contacting Andy Tauer, 317-232-8587 or Section Chief Jerry Rud, 317-232-7200 at IDEM.

Audio: Andy Tauer, Ag Liaison, IDEM (2:45 MP3)

President Obama tours Missouri farm

What do you do when the President of the United States comes to your farm? You show him the place, talk about ag policy, and send him home with some food. Lowell and Marcia Schachtsiek showed President Barak Obama around their farm in northeast Missouri, following his visit at a nearby ethanol plant earlier this week. It was all part of Obama’s Midwest ‘White House to Main Street’ tour.

AUDIO: Lowell Schachtsiek (3 min. MP3)

Iowa group provides $100,000 for scholarships

The Agribusiness Association of Iowa (AAI) has donated 100-thousand dollars for scholarships to Iowa State University’s College of Agriculture and Life Sciences.

The scholarships will be available to students enrolling at Iowa State and pursuing careers in agriculture.  They are targeted to attract students to agricultural industries and provide employment opportunities with AAI members companies.

Students will be eligible for the scholarships beginning this fall and funds will be distributed over a five-year period.

Indiana 5th in hog cash receipts

When it comes to cash receipts from marketing of hogs and pigs, Indiana ranks 5th (Iowa is 1st), with cash receipts totaling $834 million in 2009, a drop of 9 percent from 2008. Nationally, cash receipts of hogs and pigs totaled $14.1 billion, down 10 percent from a year earlier.

Indiana marketed 1.798 billion pounds of pork last year, down slightly from 2008, 32.7 billion pounds of pork were produced nationally.

Obama pledges support for biodiesel credit

One of the leaders of the Iowa Renewable Fuels Association says he used a brief visit with President Obama this week to stress the importance of extending the biodiesel tax credit—and he says the President give him a positive response.

Brad Albin, vice president of Renewable Energy Group and secretary of IRFA, had a 90 second exchange with Obama following a town hall meeting in Ottumwa on Tuesday.  Albin says he shared the message of the biodiesel industry’s state of disruption and uncertainty resulting from the lapse of the tax credit.  Albin says Obama assured him of his commitment to clean energy and promised to whatever he could to get the tax credit extended.  Obama’s comment, according to Albin—“I’m on your side, but I’ve got a Congress to deal with.”

Hoosiers in the news

NAMES IN THE NEWS

Jane Carr of Harrison County has been recognized as an ISDA Certified Livestock Producer. Jane and her family raise all natural Black Angus cattle. To date, 27 Hoosier farmers have been certified in the voluntary program.

Beck’s Hybrids has named Wade Wiley Soybean and Wheat Development Manager, in the position Wiley’s focus will be to evaluate the best soybean and wheat products for introduction into Beck’s seed portfolio. Wiley will also serve as a liaison between Beck’s Research and Sales Department.