Friday 27th January 2012

Another good week for soybean export shipments

It was another mixed week for grain and oilseed export sales. USDA reports corn and soybean meal sales for the week ending December 23 were within expectations while soybeans, soybean oil and wheat were below pre-report estimates. Physical shipments of soybeans and corn were more than what’s needed weekly to meet USDA projections for the 2010/11 marketing year but wheat fell short.

Wheat came out at 431,400 tons (15.9 million bushels), down 27% from the week ending December 16 and 36% lower than the four week average. The leading buyer was Iraq at 100,000 tons while unknown destinations canceled on 101,500 tons. At this point in the 2010/11 marketing year, wheat sales are 942.5 million bushels, compared to 586.4 million in 2009/10. Sales of 7,100 tons for 2011/12 delivery were to Mexico.

Corn was reported at 756,600 tons (29.8 million bushels), 17% less than the previous week and 4% below the four week average. Japan was the top purchaser at 221,300 tons. So far this marketing year, corn sales are 1.024 billion bushels, compared to 984.7 million a year ago.

Soybeans were placed at 663,200 tons (24.4 million bushels), a decrease of 20% from the week before and 8% smaller than the four week average. The leading buyer was unnamed at 161,100 tons. For the marketing year to date, soybean sales are 1.285 billion bushels, compared to 1.157 billion this time last year. Sales of 285,000 tons (10.5 million bushels) for 2011/12 delivery were to China.

Soybean meal came out at 219,300 tons, an increase of 93% from the prior week and up 43% from the four week average. The Philippines picked up 49,000 tons. Cumulative soybean meal sales are 4,756,000 tons, compared to 5,768,600 a year ago.

Soybean oil was reported at 1,600 tons with sales to Mexico (5,200 tons) and Canada (2,600 tons) partially offset by cancellations from Algeria (4,000 tons) and Peru (2,100 tons). 2010/11 soybean oil sales are 946,900 tons, compared to 785,400 in 2009/10. Sales of 1,500 tons for 2011/12 delivery were Mexico.

Net beef sales totaled 17,700 tons. The reported buyers were Japan (12,500 tons), Mexico (1,700 tons), South Korea (1,400 tons), Canada (900 tons) and Taiwan (400 tons). Sales of 10,900 tons for 2011 delivery were mainly to Mexico (4,100 tons), Japan (2,000 tons) and South Korea (1,800 tons).

Cattle and hog futures end lower on profit taking

The cash cattle trade looks to be finished for the week and the year. Needless to say, feedlot managers will be pricing show lists sharply higher again on Monday, inspired by the blistering pace of packer demand seen over the last two weeks. Early predictions are cattle will be priced at 110.00 live on Monday. There were a few cattle traded in Kansas on Thursday at 107.00, and in Nebraska at 170.00 on the dressed basis. DTN reported they had heard reports that some plants were already scheduling cattle purchased on Wednesday to be killed as early as today and tomorrow.  Needless to say it has been a remarkable closing market for 2010. Cattle slaughter for Thursday was estimated at 130,000 head, 1,000 more than last week, and 29,000 greater than last year.

Boxed beef cutout values were firm on light to moderate demand and light offerings. Choice boxed beef was up .37 at 163.19, and select was up .75 at 157.19.

Chicago Mercantile Exchange live cattle contracts settled 40 to 92 points lower with the exception of the December contract closing in the black. Year-end profit taking was the major feature of the session despite some economic news that should have been supportive to prices. The December contract was up .67 points at 107.00, it is due to expire Friday, and the February was down .92 at 107.32.

Feeder cattle settled 02 to 115 points lower on the lack of support from the live pit and pretty much ignored the losses in the corn pit. Profit taking was also a factor in the negative closing prices. January settled .02 lower at 120.82, and March was down 1.15 at 122.92.

Missouri weekly feeder cattle report, receipts totaled 3978 head at auctions. With all but a handful of the auctions in Missouri taking the week off for the holidays, there were not enough feeders to test the market this week for an adequate price test. It was however very apparent that a higher undertone was present during the final week of the year. Next week brings a new tax year, and historically January is one of the busiest for the feeder market. Feeder steers medium and large 1, 239 head weighing 714 pounds traded at 124.02. 185 heifers weighing 527 pounds brought 126.74 per hundredweight.

Lean hogs settled 25 to 77 points in the red as selling pressure developed following the sharp rally in the cash markets on Wednesday.  Trade volume remained rather sluggish throughout the session. February settled .75 lower at 78.85, and April was down .42 at 82.92.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.19 lower at 72.16 on a carcass basis, Western direct was 1.01 lower at 72.08, and the East closed at 70.15 up .40. Missouri direct base carcass meat price closed steady from 62.00 to 66.00.

Pork trading was slow, with light to moderate demand and offerings.  Pork carcass cutout value was .82 higher at 77.63.

Thursday’s hog kill was estimated at 426,000 head 4,000 more than last week and 53,000 greater than last year. Iowa barrows and gilts averaged 274.3 pounds last week, .5 pounds heavier than the previous week and 6.8 pounds greater than 2009. The persistence of big hogs seems to fly in the face of suggestions that market numbers are turning significantly tighter.

Closing Grain and Livestock Futures: December 30, 2010

March corn closed at $6.16, down 8 cents
January soybeans closed at $13.66, unchanged
January soybean meal closed at $365.40, down 30 cents
January soybean oil closed at 56.61, up 23 points
March wheat closed at $7.84 and 3/4, down 14 and 1/2 cents
December live cattle closed at $107.00, up 67 cents
February lean hogs closed at $78.85, down 75 cents
February crude oil closed at $89.84, down $1.28
March cotton closed at 142.84, up 241 points
January Class III milk closed at $13.27, up 2 cents
Dow Jones Industrial Average: 11,569.71, down 15.67 points

A familiar face returning to Wisconsin Ag Dept

There will be a familiar face returning to the Wisconsin Department of Agriculture, Trade and Consumer Protection. Ben Brancel has been named Secretary by Governor-elect Scott Walker. Brancel served as Ag Secretary under Tommy Thompson but was replaced when Scott McCallum became governor. Brancel then became the state director of the USDA Farm Service Agency for the Bush Administration. He has served in the state assembly including as Speaker.

Brancel’s appointment quickly drawing praise from the Dairy Business Association “He has the experience and the knowledge to work with farmers and legislators and the work ethic to continue the dairy industry’s path of growth and economic development.” Wisconsin Farm Bureau president Bill Bruins commending the selection as well; “With his prior experiences as Assembly Speaker and as our state’s Farm Service Agency director he is uniquely qualified to lead an agency charged with growing agriculture and Wisconsin’s economy.”

Former Republican state Senator Cathy Stepp of Racine has named DNR Secretary, Stepp served on the DNR board before becoming a State Senator. Representative Scott Gunderson will be executive assistant to Stepp; he is former chair of the Assembly Natural Resources Committee.

The new Secretary of Tourism is a familiar face as well, the host of Discover Wisconsin, Stephanie Klett. Other appointments:

  • Secretary of the Department of Administration—Mike Huebsch
  • Secretary of the Department of Commerce—Paul Jadin
  • Secretary of the Department of Health Services—Dennis Smith
  • Secretary of the Department of Transportation—Mark Gottlieb
  • Secretary of the Department of Revenue—Rick Chandler
  • Secretary of the Department of Children and Families—Eloise Anderson
  • Secretary of the Department of Workforce Development—Manuel “Manny” Perez
  • Secretary of the Department of Corrections—Gary Hamblin
  • Secretary of the Department of Financial Institutions—Peter Bildsten
  • Secretary of the Department of Regulation and Licensing—Dave Ross
  • Executive Director of WHEDA—Wyman Wynston

Thursday midday cash livestock markets

Cattle country is quiet following yesterday’s active business. The feedlot trade advanced $3 to $4 on a live basis Wednesday. Active trade volume surfaced in Nebraska and Kansas at sharply higher money, 168.00 to 170.00 dressed and 106.00 to 106.50 live. Business in Texas was somewhat more moderate with most of the deals marked at 107.00. While we might see some carry over and clean-up deals, it sounds like business is essentially done for the week.

Boxed beef cutout values are higher at midday. Choice beef is up .59 at 163.41, and select is up 1.06 at 157.50.

Missouri weekly feeder cattle report, receipts totaled 3978 head at auctions. With all but a handful of the auctions in Missouri taking the week off for the holidays, there were not enough feeders to test the market this week for an adequate price test. It was however very apparent that a higher undertone was present during the final week of the year. Next week brings a new tax year, and historically January is one of the busiest for the feeder market. Feeder steers medium and large 1, 239 head weighing 714 pounds traded at 124.02. 185 heifers weighing 527 pounds brought 126.74 per hundredweight.

Direct trade hogs opened higher on a fairly good morning run. Iowa/Minnesota barrows and gilts are .23 higher and the West is up .49 with both at 73.58 on a carcass basis, the East is up .42 at 70.17. Missouri direct base carcass meat price is steady from 62.00 to 66.00.

Pork trading is at a near standstill.

Iowa barrows and gilts averaged 274.3 pounds last week, .5 pounds heavier than the previous week and 6.8 pounds greater than 2009. The persistence of big hogs seems to fly in the face of suggestions that market numbers are turning significantly tighter.

North Dakota disaster designation

The U.S. Department of Agriculture has designated 30 counties in North Dakota as natural disaster areas “due to losses caused by the combined effects of excessive snow, frosts, freezes, excessive rain, flooding, flash flooding, high winds, hail, lightning, tornadoes, periods of abnormally dry weather and moderate drought, weather-related insects and diseases, and ground saturation that began Jan. 1, 2010, and continues.” USDA says the conditions have “caused severe damage to canola, corn, dry beans, peas and sunflowers.”

Disaster assistance is available to producers in those counties as well as 21 contiguous counties in North Dakota, 8 in South Dakota, 7 in Minnesota and 3 in Montana. Farmers have eight months to apply for emergency low-interest loans to help cover part of their losses.

A complete list of the affected counties here:

Wisconsin grazing grants

Wisconsin Governor Jim Doyle has announced $344,980 in Grazing Lands and Conservation Initiative (GLCI) grants to fund nine projects across the state:

  • Glacierland Resource Conservation and Development Council, Inc. – Green Bay: $33,000 technical assistance grant to assist a wide array of farm families in developing grazing plans and grazing plan revisions in Northeastern Wisconsin.
  • Golden Sands Resource Conservation & Development Council, Inc. – Stevens Point: $61,309 technical assistance grant for veteran and beginning graziers in nine Central Wisconsin counties.
  • River Country Resource Conservation and Development Council, Inc. — Altoona: $80,000 technical assistance for farmers in the counties of St. Croix, Pierce, Dunn, and Pepin.
  • Columbia County Land and Water Conservation Department — Portage: A $7,840 Technical Assistance grant to provide and make available local opportunities for technical assistance to farmers new to grazing and existing grazing operations that will include all aspects of managed grazing planning.
  • GrassWorks, Inc. — Cadott: $29,875 education grant to provide a statewide grazing conference that will include educational workshops, informational resources, access to service agencies and product vendors as well as networking opportunities for new and experienced graziers of all livestock species.
  • Pri Ru Ta Resource Conservation & Development Council, Inc. — Spooner: $12,760 education grant to increase the number of farmers utilizing prescribed/managed grazing, and improve both new and experienced graziers’ understanding and management practices.
  • Waushara County UW Extension — Wautoma: $12,760 education grant to provide pasture walks, forage demonstration plots, and educational programs on managed grazing in Juneau, Wood, Portage, Waushara, Marquette, Green Lake, and Adams Counties.
  • Wisconsin School for Beginning Dairy & Livestock Farmers – University of Wisconsin – Madison: $57,537 education grant to help individuals get started in pasture-based dairy or livestock farming through classes on campus as well as through distance education technology at 12 off-site locations around Wisconsin.
  • University of Wisconsin -College of Agricultural and Life Sciences: $49,899 research grant to evaluate the effectiveness and economics of farmer selected management methods for reducing losses in pasture forage quality, quantity, and utilization from Canada thistle.

Doyle says the grants strengthen Wisconsin’s $59 billion farm economy. “The GLCI grants protect the land and water of the state through education, technical planning assistance, and research for dairy and livestock farmers.”

Selling more sizzle than steak

Commentary. Sometimes I wonder whether the folks in food retailing are wicked smart, dumber than a box of rocks or just don’t care about main street consumers. The media is all atwitter again this week about Whole Foods’ new “animal welfare labeling,” yet another marketing move by the warm, fuzzy, touchy-feely, way, way expensive food chain out of Austin, Texas. Allegedly, according to research being embraced by various supermarket chains, retailers are now convinced that “humane” is the next big thing in meat and poultry marketing.

Whole Foods is hooked up with the Global Animal Partnership (GAP) and will rate products on a scale of 1 to 5 on the gang’s “welfare” standards. But before we embrace this effort, who/what is GAP?

The GAP board of directors includes Joyce D’Silva, director of public affairs for Compassion in World Farming (CWF); Margaret Wittenberg, global vice president, and John Mackey, co-founder and CEO of Whole Foods; Steven Gross, “corporate consultant” to PETA, and CEO of Farm Forward, an anti-factory farming group; Wayne Pacelle, president and CEO of the Humane Society of the U.S. (HSUS); three organic/natural/free-range meat and dairy producers, and a New Zealand animal behaviorist who works for a private Kiwi ag research group. The “leadership” team at GAP includes Myun Park, co-founder of Compassion Over Killing (COK) and a former HSUS farm animal program executive; Sara Miller, who may or may not still be HSUS’ director of member loyalty/conferences and events, and Dr. Ian Duncan, a Canadian animal welfare professor.

Why organic and natural producers would get anywhere near HSUS and PETA and the folks who used to/still work for them is beyond me. My cynical self says it’s because they might believe the affiliation somehow gives them an animal rights seal of approval in the marketplace, a pass on the demands of the moonbats, that Whole Foods will hold the activists at bay. This may be an “advantage” that continues right up to the point where even organic or natural is unacceptable to those zealots who would define for the rest of us not only what’s “humane” and “compassionate,” but what’s socially and ethically acceptable in our lives.

This is every animal rightist’s and organic producer’s dream organization. It’s a serious mutual admiration/marketing cabal, apparently controlled by Whole Foods, HSUS and the folks who wish to keep Mssrs. Mackey and Pacelle happy. It’s a group made up of the vegan and vegetarian leaders of the world’s largest animal rights groups, including those who make no secret of their desire to see animal agriculture disappear, and those for whom affordability for 95% of the population is no concern. This gang is all philosophy and no practice, or as we like to say in the real world, all hat and no cattle.

It’s great marketing spin for Whole Foods, given its niche market in food retailing. However, it’s also likely other supermarket chains will try and jump on board this holistic bandwagon, buying into the silliness that all America is waiting for “happy animal” labels. Any supermarket chain executive even contemplating such a program needs to pick up a phone book, then the telephone and call any or all of national organizations representing cattle, swine, poultry and dairy farmers and ranchers. Each and everyone of these groups has – and will share and cooperate with the retailer – science-based standards of production that are producer proven, and which won’t force the supermarket to start charging $20 a pound for steak or $6 a gallon for milk.

And to the national farm and ranch organizations: Take a page from the Whole Foods/HSUS product marketing handbook: Package your standards and practices and reach out to the retailers before they reach back down the chain and make unreasonable or silly demands, complete with press releases.

To my mind, these cynical efforts to manipulate the public perception of farm animal care have little or nothing to do with building a better world on or off the farm. It’s all about bucking up the bottom line.

Selling the sizzle…

Sometimes I wonder whether the folks in food retailing are wicked smart, dumber than a box of rocks or just don’t care about main street consumers. The media is all atwitter again this week about Whole Foods’ new “animal welfare labeling,” yet another marketing move by the warm, fuzzy, touchy-feely, way, way expensive food chain out of Austin, Texas. Allegedly, according to research being embraced by various supermarket chains, retailers are now convinced that “humane” is the next big thing in meat and poultry marketing.

Whole Foods is hooked up with the Global Animal Partnership (GAP) and will rate products on a scale of 1 to 5 on the gang’s “welfare” standards. But before we embrace this effort, who/what is GAP?

The GAP board of directors includes Joyce D’Silva, director of public affairs for Compassion in World Farming (CWF); Margaret Wittenberg, global vice president, and John Mackey, co-founder and CEO of Whole Foods; Steven Gross, “corporate consultant” to PETA, and CEO of Farm Forward, an anti-factory farming group; Wayne Pacelle, president and CEO of the Humane Society of the U.S. (HSUS); three organic/natural/free-range meat and dairy producers, and a New Zealand animal behaviorist who works for a private Kiwi ag research group. The “leadership” team at GAP includes Myun Park, co-founder of Compassion Over Killing (COK) and a former HSUS farm animal program executive; Sara Miller, who may or may not still be HSUS’ director of member loyalty/conferences and events, and Dr. Ian Duncan, a Canadian animal welfare professor.

Why organic and natural producers would get anywhere near HSUS and PETA and the folks who used to/still work for them is beyond me. My cynical self says it’s because they might believe the affiliation somehow gives them an animal rights seal of approval in the marketplace, a pass on the demands of the moonbats, that Whole Foods will hold the activists at bay. This may be an “advantage” that continues right up to the point where even organic or natural is unacceptable to those zealots who would define for the rest of us not only what’s “humane” and “compassionate,” but what’s socially and ethically acceptable in our lives.

This is every animal rightist’s and organic producer’s dream organization. It’s a serious mutual admiration/marketing cabal, apparently controlled by Whole Foods, HSUS and the folks who wish to keep Mssrs. Mackey and Pacelle happy. It’s a group made up of the vegan and vegetarian leaders of the world’s largest animal rights groups, including those who make no secret of their desire to see animal agriculture disappear, and those for whom affordability for 95% of the population is no concern. This gang is all philosophy and no practice, or as we like to say in the real world, all hat and no cattle.

It’s great marketing spin for Whole Foods, given its niche market in food retailing. However, it’s also likely other supermarket chains will try and jump on board this holistic bandwagon, buying into the silliness that all America is waiting for “happy animal” labels. Any supermarket chain executive even contemplating such a program needs to pick up a phone book, then the telephone and call any or all of national organizations representing cattle, swine, poultry and dairy farmers and ranchers. Each and everyone of these groups has – and will share and cooperate with the retailer – science-based standards of production that are producer proven, and which won’t force the supermarket to start charging $20 a pound for steak or $6 a gallon for milk.

And to the national farm and ranch organizations: Take a page from the Whole Foods/HSUS product marketing handbook: Package your standards and practices and reach out to the retailers before they reach back down the chain and make unreasonable or silly demands, complete with press releases.

To my mind, these cynical efforts to manipulate the public perception of farm animal care have little or nothing to do with building a better world on or off the farm. It’s all about bucking up the bottom line.

Just do it right

I remember as a child, asking the question “why do we castrate?” when we were processing piglets one day.

Pigs are castrated to avoid undesirable sexual or aggressive behavior. As the age and body size of sexual maturity is reached, boars tend to be more aggressive with pen mates and more difficult to handle than barrows (castrated male pigs) of similar age and weight.

The other reason piglets are castrated is because meat from the intact male hog– has high potential for an undesirable strong odor and flavor commonly referred to as boar taint.

In recent years, several European countries have passed legislation banning castration of pigs.

Castration is an important management practice that helps control aggressive pig behavior and assures a desirable pork product. As one respected animal scientist suggests, perhaps the most important aspect of pig castration is proper training and skill development of the individuals that are responsible for perform the procedure.

As is the case with every other animal agriculture practice – the key is to simply do it right – on your farm – every day.

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