Two Nebraska Corn Board farm directors have been elected to national boards this week. Jon Holzfaster, the chairman of government affairs for the Nebraska Corn Board, was selected to the National Corn Board during Corn Congress where he will be one of four members who will oversee the National Corn Growers Association. Alan Tiemann, the current chairman for the Nebraska Corn Growers, was re-elected to serve on the U.S. Grains Council Board of Directors.
Heat still hindering milk production
July 29, 2010 By Leave a Comment
After slipping a quarter-cent on Wednesday, cash cheese held stead on the Chicago Mercantile Exchange on Thursday. USDA Ag Marketing Service reports milk production continues to slip from heat and humidity as manufacturers are looking for loads. Some report spot prices $1.00 to $3.00 over market, some cheese makers seem to be trying to get out ahead of an expected big increase in the Class III price from July to August. Futures closes on Thursday with July at $13.74 and August at $14.92.
AMS says Florida manufacturers are scrambling to find milk to fill orders as several retail milk promotions started up. They are still shipping milk out of the Sunshine state but it dropped from 131 loads last week to 38 loads this week. Milk from Texas is moving into the Southeast to help make up for the decline in production there.
Meanwhile, production in the Southwest seems to have leveled off at what looks like the seasonal lows. Reporters in Arizona and New Mexico say cows seem to have gotten used to the weather although humidities are still high. The Pacific Northwest seems to be the only region where cows are comfortable and production is running above year-ago levels.
Schwarzenegger vetos farm overtime bill
July 29, 2010 By Leave a Comment
California Governor Arnold Schwarzenegger has vetoed a bill which would have required overtime pay for California farm workers after 8-hour days. The Governor wrote in his veto message the requirement would be burdensome, “recognizing that agricultural work is different from other industries: it is seasonal, subject to unpredictability of Mother Nature and requires the harvesting of perishable goods.”
Supporters of the bill contend those who work in the fields should not be treated differently from those who process and pack the food or stock the grocery store shelves.
California does, in fact, have a law requiring overtime pay for farm workers for anything over 10 hours per day or for the seventh day of a week after six consecutive days of 10 hours or more. No other state has any overtime requirement for farm workers.
China says they win WTO poultry dispute with U.S.
July 29, 2010 By Leave a Comment
Chinese state media says the World Trade Organization has ruled in China’s favor in a dispute over chicken exports to the United States. China Daily says Beijing has received word from the WTO that the ruling will be announced in one or two months opening the U.S. market to Chinese finished chicken breasts.
The two countries halted imports of each other’s chicken in 2004 in the midst of the avian influenza outbreak. China has reopened their borders to some U.S. chicken imports but complained to the WTO that the U.S. has not reciprocated.
Wheat continues to take the lead
July 29, 2010 By Leave a Comment
Soybeans were higher on technical and speculative buying, along with spillover from wheat. Overall, the supply is tight and demand continues to look solid with weekly export sales towards the high end of estimates; old crop shipments were slow. Near term crop weather does look generally good but with the calendar turning towards August, traders are willing to take a step back and put some weather premium in due to the uncertainty. Soybean meal and oil were higher following the lead of soybeans. China bought 2009/10 tons of U.S. soybean oil, continuing their at least near term shift to U.S. supplies because of Beijing’s trade dispute with Argentina.
Corn was higher on technical buying and spillover from wheat. Also, even while the crop does look good overall, there are concerns about yield and quality. Forecasts for the coming week do have a hot, dry pattern and parts of the Eastern and Southern Cornbelt definitely need rain, but most traders took a wait and see attitude. Ethanol futures were higher. Ahead of the open, Mexico picked up 146,000 tons of U.S. corn (30,000 tons 2009/10 and 116,000 tons 2010/11). According to the International Grains Council, the U.S. is expected to see increases in exports of both corn and feed wheat to make up for global weather problems impacting wheat production.
The wheat complex was higher on fund buying and short covering. Weekly export sales were solid, including sales to Egypt, and the trade continues to watch weather and its impact on crops in Russia and the Black Sea region. That said – at least some of that is priced in right now and traders continue to keep an eye on U.S. and world harvest numbers. The International Grains Council has the global crop at 651 million tons, down from earlier projections, but still the third largest in history. According to the Wheat Quality Council’s spring crop tour, hard red spring yield is currently calculated at 46 bushels per acre and durum is seen at 38.4 bushels per acre, up from last year for both types. European wheat did see some profit taking after an earlier rise to two year highs with November and London Paris both down .8% on the day. Japan’s Ag Ministry issued a tender for 141,567 tons of wheat (70,101 tons U.S. dark northern spring, 36,126 tons Canadian western red spring and 35,340 tons Australian standard white).
Johanns seeks prevention of cap-&-trade “deals”
July 29, 2010 By Leave a Comment
Nebraska Senator Mike Johanns has taken a step to try and block cap-and-trade provisions from a House-Senate Conference bill. If action to block cap-and-trade isn’t taken in the Senate then his amendment would require 67 Senators approving it for it to become law without being debated in the Senate.
Johanns says his amendment would prevent Democrats from trying to pass cap-and-trade by attaching it to a conference report during a lame duck session as he says is being reported.
Johanns asserts the negative impact on farmers, ranchers and all Americans from cap-and-trade in higher taxes and energy costs would be “devastating” and should not be “snuck in” behind the scenes.
Buchli wins Youth in Ag Award
July 29, 2010 By Leave a Comment
Jason Buchli from Alexandria, Nebraska was awarded the Brownfield Youth in Ag Award at the Jefferson County Fair. He has been involved in 4-H for ten years and competed in everything from showing cows to welding. However, Buchli says he would advise other members to start off with smaller and easier projects. Jason hopes to become a farmer and rancher when he gets older and wants to work with beef cattle in particular.
Cash cattle and feeder and live contracts lower Thursday
July 29, 2010 By Leave a Comment
USDA Mandatory reported cattle trading was light to moderate on light demand in the central and western areas of Nebraska on Thursday along with Kansas. Compared to Wednesday Nebraska sales were mostly steady at 148.00 dressed and 93.00 live. Compared to last week dressed sales were 2.00 to 3.00 lower and live trades were 1.00 lower. In Kansas live sales were 1.00 to 2.00 lower at 93.00, and dressed sales were 3.00 lower at 148.00. Trading was light in Texas, Oklahoma and New Mexico on light to moderate demand. Live sales trended 2.00 lower than last week at 93.00. Thursday’s cattle slaughter is estimated at 129,000, 1,000 less than last week, but 1,000 more than last year. Boxed beef cutout values were lower on light to moderate demand and light to moderate offerings. Choice boxed beef closed 1.31 lower at 153.49, and select was down .60 at 145.74.
Chicago Mercantile Exchange live cattle contracts settled 15 to 92 points lower after starting out the session moderately higher. By midday futures were pressured by the developing cash trade as well as weakness in the boxed beef values. Additional pressure came from the stock market s drop from early session highs. August settled .92 lower at 91.85, and October was down .72 at 93.47.
Feeder cattle finished the session 30 to 80 points lower on gains in the grain markets along with the inability for the live contracts to hold early gains. August settled .80 lower at 113.72, and September was down .57 at 114.27.
Feeder cattle receipts at the Ogallala Livestock Auction in Nebraska totaled 1,000 head. No comparison to last week, due to no feeder cattle sale. Steers accounted for 92% of the run, with weights over 600 pounds 99% of the offering. Feeder steers medium and large 1; 276 head averaging 905 pounds traded at 110.03. Just a few heifers traded, those weighing 804 pounds brought 105.93.
Barrows and gilts in the Iowa/Minnesota direct trade closed 2.61 lower at 81.67 on a carcass basis, the West was down 1.98 at 81.51, and the East was up 3.73 at 84.80. Missouri direct base carcass meat price closed steady from 74.00 to 75.00. Thursday’s hog kill was estimated at 401,000 head, 2,000 more than last week, and 15,000 less than last year. Iowa market hogs last week averaged 268.4 pounds, 1.1 pounds heavier than the previous week and 2.1 pounds higher than 2009. Slower chain speed this month may be compromising the current status of the finishing floors according to DTN. Pork trading was slow to moderate, with light to moderate demand and offerings. Por carcass cutout value was up .03 at 89.38.
Lean hog settled unchanged to 147 points higher on Wednesday’s sharply higher cash market along with impressive gains over the last week in the pork carcass value. Several contracts posted new contract highs. August was up the most settling at 84.85 up 1.47, and October was 1.12 higher at 78.07.
Pork bellies were unquoted.
Cattlemen concerned about cow numbers
July 29, 2010 By Leave a Comment
At the Cattle Industry Summer Conference in Denver, cattlemen are discussing how to rebuild the nation’s cow herd.
Beef cow numbers in the U.S. have fallen to their lowest level in more than 50 years. Montana rancher Bill Donald, president elect of NCBA, says a combination of factors has led to the decline.
“Every time we have gotten a signal, a market signal, to rebuild we have had a major drought in some portion of the country and so our cow herds just got shifted around from one region to another rather than expanding like we would have liked and what would have been good for the industry,” said Donald.
Donald says rising land values are also a factor.
“The value of land has gotten high and a lot of people have sold their ranches to people that aren’t necessarily ranchers,” said Donald. “While they might lease out a portion of it or somewhat, their numbers are down from that because there are less resources to utilize.”
CLosing Grain and Livestock Futures: July 29, 2010
July 29, 2010 By Leave a Comment
September corn closed at $3.79 and 1/4, up 3 cents
August soybeans closed at $10.26 and 3/4, up 16 and 1/4 cents
August soybean meal closed at $305.40, up $3.70
August soybean oil closed at 39.27, up 43 points
September wheat closed at $6.27 and 1/2, up 10 cents
August live cattle closed at $91.85, down 92 cents
August lean hogs closed at $84.85, up $1.47
September crude oil closed at $78.36, up $1.37
December cotton closed at 76.91, up 60 points
August Class III milk closed at $14.92, up 3 cents
Dow Jones Industrial Average: 10,467.16, down 30.72 points
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